Did you run build.sh from the Scripts directory? I have built with Xcode 13, but I always run build.sh first. Only other thing I can think of is that there is something about the M1 processor that needs to be addressed in source. Make sure you are using the latest Appium (1.22.1 as of now).
I am seeing this: Disable the build in notification checker by XCTest to avoid possible UI interuction failure on Xcode 13.2 and iOS 15.2 WebDriverAgent#540
In the release notes for 1.22.1:
But unfortunately that is beyond my level of expertise.