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It seems like this issue is occurring on the simulator/system end. Are you able to run any other games? What does it show under the "Security" section in your System Settings > Privacy & Security?

https://support.apple.com/en-gb/guide/mac-help/mchleab3a043/mac

Did you try opening the game from another location (e.g. Downloads)?

It was an odd issue but I've managed to run it now. I had to inspect the package content of the mdma.pdx and explicitly open the pdex.dylib file and confirm that it's not a malware. After that the Simulator was able to load the game.