It's not possible to merge a framework with resource into an iOS app target because the resources can not be found in debug builds.

Steps to reproduce:

• Create an Xcode Project with iOS App Template

• Add a Framework Target (make sure to "Embed in Application")

• Add an Asset Catalog to Framework Target

• Add an Color Resource (or Image Set, or any other Resource)

• Reference the Resource in App Target (I have used a SwiftUI View)

• Run on Device (!) to make sure everything works as expected

• Change "Create Merged Binary (MERGED_BINARY_TYPE)" build setting of app target to "Automatic (automatic)"

• Run again (on Device and with Debug configuration!) and observe how the resources framework resource cannot be found anymore (using SwiftUI you will see a "No image/color named '...' in asset catalog for ..." error message in console logs)

Note:

• Everything works fine in Simulator
• Release configuration works fine
• Same behavior for manual and automatic merging
• Same behavior for resources which are not bundled in Asset Catalog
• When archiving the app in debug configuration, an Assets.car file is present in ReexportedBinaries/FrameworkWithResources.framework/ but Bundle(for: SomeClassInFrameworkWithResources.self) returns Frameworks/FrameworkWithResources.framework/, which does not contain Assets.car file.