First of all, download the latest Xcode Version. No Need to install the latest Xcode.
We can solve this issue by following the below steps:
Right click on Xcode 8 or Newer version of your Xcode, select "Show Package Contents", "Contents", "Developer","Platforms", "iPhoneOS.Platform", "Device Support"
Copy the 10.0 folder (or above for later version).
Back in Finder select Applications again
Right click on Xcode 7.3 or version of your Xcode, now select "Show Package Contents", "Contents", "Developer", "Platforms","iPhoneOS.Platform", "Device Support"
Paste the 10.0 folder (or above for later version).
Now your Xcode has a new developer disk image. Close the finder now, and quit your Xcode. Open your Xcode and the error will be gone. Now you can connect your latest device to old Xcode versions.
OR
If you can't download the latest Xcode, you can get the latestDeveloper Disk Image for your Xcode from this link:-