I'm using Xcode 7.3.1, which supports up to iOS 9.3.1.
Now I'd like to check my app on a device on a relatively current version of iOS (10.x), so I added some OS Support folders (using Xcode 7.3.1 with iOS 10 support ), which seems to have worked well.
Now I need the latest OS support folder (i.e. 10.2.1(14D7)). I have checked other StackOverflow answers, but I haven't found one that helps.
Just use Xcode 8. It supports iOS 9 and the latest iOS 10. If you need to keep Xcode 7 in order to run on older iOS versions you can just rename your Xcode to Xcode7 and install Xcode 8 next to it. You can run both of them but it would be wise to do it not at the same time.