Instruments did not check in (TestApp, sample test)

I am trying to run the sample python test (ios_simple.py) for the first time against a simulator. I am seeing the following error. Here are my versions:

Appium:1.4.13
Xcode:7.0.1
OSX: 10.11

How can I resolve this problem?

Log snippet:

info: [IOS_SYSLOG_ROW ] Dec 25 12:02:42 vikrams-Mac-mini com.apple.accessibility.AccessibilityUIServer[5843]: |AXIPC|warning| Could not send message (com.apple.accessibility.AXSpringBoardServer). Port:7171. Error:268451843 (0x10004003). Timeout:1.000000(1000).

info: [IOS_SYSLOG_ROW ] <AXIPCMessage: 0x7fbbdbc145e0>. Client port: 0. Key: 4030. Payload: {
info: [IOS_SYSLOG_ROW ] }
warn: Instruments socket client never checked in; timing out (global)
info: [debug] Killall instruments

info: [IOS_SYSLOG_ROW ] Dec 25 12:02:43 vikrams-Mac-mini com.apple.accessibility.AccessibilityUIServer[5843]: |AXIPC|warning| Could not send message (com.apple.accessibility.AXSpringBoardServer). Port:7171. Error:268451843 (0x10004003). Timeout:1.000000(1000).

info: [IOS_SYSLOG_ROW ] <AXIPCMessage: 0x7fbbdbc21a10>. Client port: 0. Key: 4012. Payload: {
info: [IOS_SYSLOG_ROW ] register = 1;
info: [IOS_SYSLOG_ROW ] }

info: [debug] [INSTSERVER] Instruments exited with code null
info: [debug] Killall instruments
info: [debug] Instruments never checked in
info: [debug] Attempting to retry launching instruments, this is retry #1
info: [debug] Killall Simulator
info: [IOS_SYSLOG_ROW ] Dec 25 12:02:43 vikrams-Mac-mini DTServiceHub[5789]: Could not create service named com.apple.instruments.server.services.processcontrol.posixspawn

Updating Xcode should take care of it.

After updating XCode, I am seeing the following error:

E WebDriverException: Message: A new session could not be created. (Original error: Command failed: /bin/sh -c xcrun --sdk iphonesimulator --show-sdk-version
E
E
E Agreeing to the Xcode/iOS license requires admin privileges, please re-run as root via sudo.
E
E
E )

/usr/local/lib/python2.7/site-packages/selenium/webdriver/remote/errorhandler.py:181: WebDriverException
__________________ SimpleIOSTests.test_ui_computation __________________

You have to actually open Xcode once after downloading and accept the license.

Thanks for the reply. I already accepted the license.