In my case the "Fix Issue" button triggers a spinner for about 20 seconds and fixes nothing.
This works for me (iOS 7 iPhone 5, Xcode 5):
Xcode > Window > Organizer > Devices
Find the connected device(with a green dot) on the left pane. Select "Provisioning Profiles" On the right pane, there is a line with warning. Delete this line.
Now go back to click the "Fix Issue" button and everything is fine - the app runs in the device as expected.