Ah I think this was why I was thinking of cutting an OpenFL 8.9.6 release (Discussion: OpenFL 8.9.6?)
I only use the team-id setting when signing for iOS (as it picks the certificate, alias, identity and provisioning-profile automatically I believe). In fact I also put this in my ~/.lime/config.xml so it can sign any iOS app I build on my system
The update ios -xcode fallback is helpful though because it lets you use Xcode directly until it feels happy building and you can see (using a UI) what changes you need to make in terms of signing or other prompts