Xcode error accessing build database while using the universal script for making framework builds

I am trying to build a Swift framework containing cocoapods, using the below universal framework script got from here: Swift universal framework depending on pod

The build fails when using Xcode 12 and -UseModernBuildSystem=NO:

The Legacy Build System will be removed in a future release. You can configure the selected build system and this deprecation message in File > Workspace Settings.
Command PhaseScriptExecution failed with a nonzero exit code

error when using Xcode 12 and modern build system:

error: accessing build database
"/Users/user/Library/Developer/Xcode/DerivedData/SnapKit-gldcozqrglacwhcqsctatmsoiouc/Build/Intermediates.noindex/XCBuildData/build.db": disk I/O error

Does anyone know the right solution for this problem or a workaround?

Universal XC Framework using pods : https://github.com/deepesh259nitk/PaymentsKit

Client App using the same pods : https://github.com/deepesh259nitk/PaymentClient

Adding below script to end of pod file of the client app. ( to fix a known crash like : Custom Framework : dyld: Symbol not found: _$s11CryptoSwift7PaddingO5pkcs7yA2CmFWC)

post_install do |installer|
        installer.pods_project.targets.each do |target|
          target.build_configurations.each do |config|
            config.build_settings['BUILD_LIBRARY_FOR_DISTRIBUTION'] = 'YES'
          end
        end
      end

and then run the pod commands

 pod deintegrate
 pod install