This error is shown when your XCode is old and the related device you are using is updated to latest version. First of all, install the latest Xcode version.
We can solve this issue by following the below steps:-
If everything worked properly, your XCode has a new developer disk image. Close the finder now, and quit your XCode. Open your Xcode and the error will be gone. Now you can connect your latest device to old Xcode versions.
Thanks