Unable to run Appium tests using Appium run-time 1.6.4

Below is my set-up 1. Appium Server 1.6.4

with this set-up tests are failing with following error message:

Blockquote[debug] [iOSSim] Killing all iOS Simulators
[debug] [iOSSim] Using fkill to kill processes: 285
[XCUITest] AggregateError:
Error: Killing process 285 failed: Operation not permitted
at Promise.all.then (/usr/local/lib/node_modules/appium/node_modules/fkill/index.js:41:10)
at AggregateError (/usr/local/lib/node_modules/appium/node_modules/aggregate-error/index.js:19:3)
at Promise.all.then (/usr/local/lib/node_modules/appium/node_modules/fkill/index.js:41:10)
at process._tickCallback (internal/process/next_tick.js:109:7)
{ AggregateError:
Error: Killing process 285 failed: Operation not permitted
at Promise.all.then (/usr/local/lib/node_modules/appium/node_modules/fkill/index.js:41:10)
at AggregateError (/usr/local/lib/node_modules/appium/node_modules/aggregate-error/index.js:19:3)
at Promise.all.then
But tests are running all fine with old Appium IDE Version 1.5.3 (Ara), available on same machine macOs Sierra 10.12.3

Could you please advise me what needs to be corrected?

I have added more log in below gist:
[http://gist.github.com/anonymous/bfb8464c0388b7bfdba567dba5f0e36a](more tracelog at below gist: http://gist.github.com/anonymous/bfb8464c0388b7bfdba567dba5f0e36a)

Thanks a lot

Hi Guy,
Any update on this. I am almost blocked on it & currently fallen back on Appium IDE Version 1.5.3 (Ara), as tests are not running on the server as mentioned in my original post. Please help. Thanks