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Fixing the "Could not connect to the server" Error in Xcode

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The Issue

The authentication for the Apple account added to Xcode had expired. When I tried to add it again, the following dialog started to appear.

Could not connect to the server.

Environment

  • macOS Sequoia 15.4
  • Xcode 16.x

Cause

I don't remember adding it myself, but I found the following setting in /etc/hosts.
Even when Xcode tries to connect to Apple's servers for authentication, it's being redirected to localhost.
Removing or commenting this out will resolve the issue.

127.0.0.1 developerservices2.apple.com

Discussion