Appium not utilising the already opened iOS simulator

This is appium log I am seeing if I provide udid for already running simulator:

[Appium] Welcome to Appium v1.7.2
[Appium] Appium REST http interface listener started on 0.0.0.0:4723
[HTTP] --> POST /wd/hub/session {“desiredCapabilities”:{“app”:"/Users/c0250543/Wallet Apps/Wallet.app",“automationName”:“XCUITEST”,“connectHardwareKeyboard”:“false”,“deviceName”:“iPhone 7 Plus”,“fullReset”:“false”,“newCommandTimeout”:“3600”,“noReset”:“true”,“platformName”:“iOS”,“platformVersion”:“10.3”,“udid”:“7EBB3C18-05A3-48E7-ADBB-581E553E8AEF”},“capabilities”:{“desiredCapabilities”:{“app”:"/Users/c0250543/Wallet Apps/Wallet.app",“automationName”:“XCUITEST”,“connectHardwareKeyboard”:“false”,“deviceName”:“iPhone 7 Plus”,“fullReset”:“false”,“newCommandTimeout”:“3600”,“noReset”:“true”,“platformName”:“iOS”,“platformVersion”:“10.3”,“udid”:“7EBB3C18-05A3-48E7-ADBB-581E553E8AEF”},“firstMatch”:[{“platformName”:“ios”}]}}
[debug] [MJSONWP] Calling AppiumDriver.createSession() with args: [{“app”:"/Users/c0250543/Wallet Apps/Wallet.app",“automationName”:“XCUITEST”,“connectHardwareKeyboard”:“false”,“deviceName”:“iPhone 7 Plus”,“fullReset”:“false”,“newCommandTimeout”:“3600”,“noReset”:“true”,“platformName”:“iOS”,“platformVersion”:“10.3”,“udid”:“7EBB3C18-05A3-48E7-ADBB-581E553E8AEF”},null,{“desiredCapabilities”:{“app”:"/Users/c0250543/Wallet Apps/Wallet.app",“automationName”:“XCUITEST”,“connectHardwareKeyboard”:“false”,“deviceName”:“iPhone 7 Plus”,“fullReset”:“false”,“newCommandTimeout”:“3600”,“noReset”:“true”,“platformName”:“iOS”,“platformVersion”:“10.3”,“udid”:“7EBB3C18-05A3-48E7-ADBB-581E553E8AEF”},“firstMatch”:[{“platformName”:“ios”}]}]
[debug] [BaseDriver] Event ‘newSessionRequested’ logged at 1518250634806 (08:17:14 GMT+0000 (GMT))
[Appium] Merged W3C capabilities {“desiredCapabilities”:{“app”:"/Users/c0250543/… into desiredCapabilities object {“app”:"/Users/c0250543/Wallet Apps/Wallet.app"…
[Appium] Creating new XCUITestDriver (v2.64.0) session
[Appium] Capabilities:
[Appium] app: /Users/c0250543/Wallet Apps/Wallet.app
[Appium] automationName: XCUITEST
[Appium] connectHardwareKeyboard: false
[Appium] deviceName: iPhone 7 Plus
[Appium] fullReset: false
[Appium] newCommandTimeout: 3600
[Appium] noReset: true
[Appium] platformName: ios
[Appium] platformVersion: 10.3
[Appium] udid: 7EBB3C18-05A3-48E7-ADBB-581E553E8AEF
[BaseDriver] Capability ‘noReset’ changed from string to boolean. This may cause unexpected behavior
[BaseDriver] Capability ‘fullReset’ changed from string to boolean. This may cause unexpected behavior
[BaseDriver] Capability ‘connectHardwareKeyboard’ changed from string to boolean. This may cause unexpected behavior
[BaseDriver] Capability ‘newCommandTimeout’ changed from string (‘3600’) to integer (3600). This may cause unexpected behavior
[BaseDriver] Session created with session id: 746918d2-e7fe-4fa0-81fa-b1abb6c2478d
[debug] [XCUITest] Current user: ‘c0250543’
[debug] [XCUITest] Current version of libimobiledevice: stable 1.2.0 (bottled), HEAD
[debug] [XCUITest] Xcode version set to ‘9.0’ (tools v9.1.0.0.1.1508540944)
[debug] [XCUITest] iOS SDK Version set to ‘11.0’
[debug] [BaseDriver] Event ‘xcodeDetailsRetrieved’ logged at 1518250635602 (08:17:15 GMT+0000 (GMT))
[debug] [XCUITest] Available devices:
[XCUITest] Error: Unknown device or simulator UDID: ‘7EBB3C18-05A3-48E7-ADBB-581E553E8AEF’
at XCUITestDriver.determineDevice$ (/usr/local/lib/node_modules/appium/node_modules/appium-xcuitest-driver/lib/driver.js:622:17)
at tryCatch (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:67:40)
at GeneratorFunctionPrototype.invoke [as _invoke] (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:315:22)
at GeneratorFunctionPrototype.prototype.(anonymous function) [as next] (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:100:21)
at GeneratorFunctionPrototype.invoke (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:136:37)
Error: Unknown device or simulator UDID: ‘7EBB3C18-05A3-48E7-ADBB-581E553E8AEF’
at XCUITestDriver.determineDevice$ (/usr/local/lib/node_modules/appium/node_modules/appium-xcuitest-driver/lib/driver.js:622:17)
at tryCatch (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:67:40)
at GeneratorFunctionPrototype.invoke [as _invoke] (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:315:22)
at GeneratorFunctionPrototype.prototype.(anonymous function) [as next] (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:100:21)
at GeneratorFunctionPrototype.invoke (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:136:37)
[debug] [XCUITest] Not clearing log files. Use clearSystemFiles capability to turn on.
[MJSONWP] Encountered internal error running command: Error: Unknown device or simulator UDID: ‘7EBB3C18-05A3-48E7-ADBB-581E553E8AEF’
at XCUITestDriver.determineDevice$ (/usr/local/lib/node_modules/appium/node_modules/appium-xcuitest-driver/lib/driver.js:622:17)
at tryCatch (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:67:40)
at GeneratorFunctionPrototype.invoke [as _invoke] (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:315:22)
at GeneratorFunctionPrototype.prototype.(anonymous function) [as next] (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:100:21)
at GeneratorFunctionPrototype.invoke (/usr/local/lib/node_modules/appium/node_modules/babel-runtime/regenerator/runtime.js:136:37)
[HTTP] <-- POST /wd/hub/session 500 973 ms - 209

xcrun simctl list:

PKMOSXT47HG8WNP:~ c0250543$ xcrun simctl list | grep ‘iPhone 7 Plus’
iPhone 7 Plus (com.apple.CoreSimulator.SimDeviceType.iPhone-7-Plus)
iPhone 7 Plus (10E52DA7-4B86-4547-AFC0-3F540F0DE026) (Shutdown)
iPhone 7 Plus (15B4D8C9-2E98-4FFB-8BFD-A048C5471D02) (Shutdown)
iPhone 7 Plus (A8CA38AF-727F-4D29-8EF0-DFA02445BA9C) (Shutdown) (unavailable, runtime profile not found)
Phone: iPhone 7 Plus (15B4D8C9-2E98-4FFB-8BFD-A048C5471D02) (Shutdown)
Phone: iPhone 7 Plus (7EBB3C18-05A3-48E7-ADBB-581E553E8AEF) (Booted)
Phone: iPhone 7 Plus (A8CA38AF-727F-4D29-8EF0-DFA02445BA9C) (Shutdown)

Capabilities I am using:

appium.localIOS.app=/Users/c0250543/Wallet Apps/Wallet.app
appium.localIOS.platformName=ios
appium.localIOS.platformVersion=10.3
appium.localIOS.deviceName=iPhone 7 Plus
appium.localIOS.newCommandTimeout=3600
appium.localIOS.automationName=XCUITEST
appium.localIOS.connectHardwareKeyboard=false
appium.localIOS.noReset=true
appium.localIOS.fullReset=false
appium.localIOS.udid=7EBB3C18-05A3-48E7-ADBB-581E553E8AEF