ERROR: Job failed: Process exited with status 1` when using `macos-15-xcode-16` in GitLab CI/CD

I am encountering an issue when using GitLab CI/CD with the macos-15-xcode-16 image. The pipeline fails during the "Preparing environment" step with the following error message:

ERROR: Job failed: Process exited with status 1

Steps to Reproduce

1. Set up a GitLab CI pipeline with the following .gitlab-ci.yml configuration:

build:
  stage: build
  tags:
    - saas-macos-medium-m1
  image: macos-15-xcode-16
  script:
    - echo "running scripts in the build job"

2. Trigger the pipeline.

Actual Results

The job fails during the "Getting source from Git repository" step with the following logs:

Running with gitlab-runner 17.4.0~pre.110.g27400594 (27400594)
  on green-2.saas-macos-medium-m1.runners-manager.gitlab.com/default zxQ9CHzH, system ID: s_4366a769b6ab
Resolving secrets
Preparing the "instance" executor
00:32
Preparing instance...
Dialing instance i-00724e5f1959d5db6...
Instance i-00724e5f1959d5db6 connected
Enforcing VM Isolation
Creating nesting VM tunnel
Creating nesting VM macos-15-xcode-16
Dialing nesting daemon
Created nesting VM nesting-2b7vhdyw 192.168.64.4
Preparing environment
00:09
Running on gitlabs-Virtual-Machine.local via runners-manager-saas-macos-medium-m1-green-2...
Getting source from Git repository
00:00
Cleaning up project directory and file based variables
00:01
ERROR: Job failed: Process exited with status 1

Expected Results

The pipeline should execute successfully, and the script (echo "running scripts in the build job") should run without errors.

Troubleshooting Steps Taken

• Verified that the runner is tagged correctly and matches the configuration.
• Ensured that the .gitlab-ci.yml file syntax is correct.
• Attempted to re-run the job multiple times, with using other version images(macos-13-xcode-14, macos-14-xcode-15) but the issue persists.