iOS simulator not found after updating LC and Xcode

Thu Nov 3 04:57:09 EDT 2016

Hi, 
Yesterday I updated Xcode to 8.1 and LiveCode to version 8.1.1 and now LiveCode can’t find any simulators for iOS. 
In the Livecode preferences the list with simulators is empty. When I click Add Entry and select the new Xcode app, it gives an error: 

"The chosen folder is not a valid iOS SDK. Selected Xcode must have an iOS SDK among: 6.1, 7.1, 8.2, 9.2 and 10.0”

When I look in Xcode though, I have iOS 9.1 and iOS 9.2 installed. 
I can also see the installed SDK’s in the /developer folder on my mac but When I click “Add Entry” these simulators and their parent folders are not selectable (grayed out)

Am I doing something wrong?