After upgrading XCode to latest version
12.5.1 , checked folder
this doesn't show any simulator even when XCode is showing default simulators installed with latest version of iOS
According to the Apple Developer article Installing and managing Simulator runtimes for Xcode 14:
Manage the amount of storage that Xcode requires by choosing Xcode > Preferences > Platforms to view the currently installed Simulator runtimes, and removing any that you don’t need.
Emphasis and italics mine
Here's the aforementioned Platforms page in Xcode 14's Preferences:
On Xcode 12 and 13, it is located in Xcode > Preferences > Components:
You can do this easily in the Xcode preferences, no need to use Finder.