I'm using xcode 6. Its fine to clean but it fails when I choose clean build folders.
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Seems like you are restricted to create a build folder in your system root.
In XCode Menu --> Preferences --> Locations Tab --> Locations sub-tab
, Change Derived Data
to Relative
and give any name in text box.
Have a look here which is also a permission problem in Xcode.

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Avinash Babu
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66Same as above, but I only needed to toggle from Default->Relative->Default. Seemed to reset it and now it works. Xcode 6.1 – mcm Nov 01 '14 at 08:59
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1Just to confirm that the toggle also/still works in XCode 6.3.1 (for me at least). – Robin Macharg May 08 '15 at 10:08
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I had to toggle a couple of times. Make sure the error window is closed. – Suz Jun 11 '15 at 22:39
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Also just to confirm that the toggle also/still works in Xcode 7 GM (for me at least) – neoneye Sep 22 '15 at 08:21
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Works for me by toggle from Default->Relative->Default. Thanks @mcm! – flashlib Nov 18 '15 at 03:14
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2Update to confirm toggle Default => Relative => Default works in Xcode 7.1.1 – Olie Dec 03 '15 at 15:58
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Wonder how to give it permission ? – onmyway133 Feb 23 '16 at 11:00
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3Just toggling Default -> Relative -> Default didn't work for me. Tried that several times. What did work for me was Default -> Relative -> Close Xcode -> Reopen XCode -> toggle back to Default. That worked on the first try. Xcode 7.2.1. – Erik van der Neut Mar 09 '16 at 05:51
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@ErikvanderNeut Absolutely true! Looks like your solution is default now. As it works in all versions of Xcode. I am running 7.3 – efimovdk Mar 25 '16 at 09:02
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Sadly, no combination of this worked for me. I'm on XCode 7.3.1, but a very old project - but I've definitely been getting this since XCode 6. My problem is a little different - I only get the error when I switch targets or switch simulators/devices, and randomly sometimes when I try to clean build folder the first time. If I try to clean the build folder a second time it usually works afterward. – Manu Kanthan Aug 30 '16 at 13:23
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It could be due to Xcode bug (at least for me in Xcode 6.3.1). Toggling the location for derived data folder will fix it.
Go to Xcode > Preferences > Locations and change Derived Data to Relative, then back to Default.
Clean build folder again.

samwize
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In Xcode 14 I clicked "Clean" command which had popped up in the 3rd row from the top and that fixed it.

Doug Null
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