The problem is in the error message. You need to update the version of the Expo Client that is installed on the simulator. If you uninstall it and then run expo start --ios -c it will install the newest version of the client and you should be good to go! Sometimes simulators can be finicky, so if you run into issues you may want to take a look at this section of our docs: https://docs.expo.io/versions/v31.0.0/introduction/installation#ios-simulator
We have an ejected Expo app and we used to run it through XCode. After upgrading to Expo 31 that does not work anymore. Fortunately it still works on Android for which we start the native application with pushd android && ./gradlew installDevMinSdkDevKernelDebug; popd.