How to fix Xcode “DTAssetProviderService could not start..” error?

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If you want the slow solution, you can reinstall Xcode 7.3.1 by downloading it from https://developer.apple.com/download/more/.

It worked for me and now my Simulator is able to start again without getting the error.

The issue is discussed in depth here:
How to fix Xcode “DTAssetProviderService could not start..” error?

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