WatchKit Xcode 7.0 Beta 2 Build Error / Circular Segues / "exit code 255"

While working on a project for WatchKit 2 on XCode 7.0 beta 2, I have encountered the following build errors:

Command /Applications/http://ift.tt/1CxB2sU failed with exit code 255

error: The folder “Interface.wkstoryboardc” doesn’t exist.

I had a storyboard with segues from view 1-2-3-4, with a final segue back from view 4-1. Each views controller had one button with a segue to the next view in the list.

Removing the segue from view 4 to 1 caused this error to go away. If this were an iPhone project, I would use an unwind segue. However, I cannot see how to do this on the watch. Has anyone else seen this behavior? Is this expected behavior, or a bug?