codesign: unrecognized option `--entitlements'

I am getting this error and not even the Dev center help desk people can figure it out, I have reinstalled xcode and the sdk multiple times, rebuilt my cert tool chain more times than I can count and even reinstalled mac osx on my macbook 4 times. I have been messing with this for over a week and I am at my wits end. I have stepped through the guided "setup" process for your dev machine many many times and I have done the same thing for another computer and it worked perfectly. Another person on my dev team, without any issues so i know it isn't the certs. From what I can tell "--entitlements" isn't even a switch for the codesign program however somehow it is in there. Thanks for all the help in advance.
This is my output at the end of the build...

ProcessingProductPackaging "/Users/cagedcoder/Library/MobileDevice/Provisioning Profiles/EB219925-9820-476B-A00D-7A08A3EBD9A4.mobileprovision" /Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/BubbleLevel.app/em bedded.mobileprovision
cd /Users/cagedcoder/Downloads/BubbleLevel
<com.apple.compilers.product-pkg-utility> "/Users/cagedcoder/Library/MobileDevice/Provisioning Profiles/EB219925-9820-476B-A00D-7A08A3EBD9A4.mobileprovision" -o /Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/BubbleLevel.app/em bedded.mobileprovision

Touch /Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/BubbleLevel.app
cd /Users/cagedcoder/Downloads/BubbleLevel
/usr/bin/touch -c /Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/BubbleLevel.app

CompressResources /Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/BubbleLevel.app
cd /Users/cagedcoder/Downloads/BubbleLevel
/Developer/Platforms/iPhoneOS.platform/Developer/usr/bin/iphoneos-optimize /Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/BubbleLevel.app

ProcessingProductPackaging /Users/cagedcoder/Downloads/BubbleLevel/Info.plist /Users/cagedcoder/Downloads/BubbleLevel/build/BubbleLevel.build/Debug-iphoneos/ BubbleLevel.build/BubbleLevel.xcent
cd /Users/cagedcoder/Downloads/BubbleLevel
<com.apple.compilers.product-pkg-utility> /Users/cagedcoder/Downloads/BubbleLevel/Info.plist -entitlements -format xml -o /Users/cagedcoder/Downloads/BubbleLevel/build/BubbleLevel.build/Debug-iphoneos/ BubbleLevel.build/BubbleLevel.xcent

CodeSign /Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/BubbleLevel.app
cd /Users/cagedcoder/Downloads/BubbleLevel
/usr/bin/codesign -f -s "iPhone Developer" --resource-rules=/Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/B ubbleLevel.app/ResourceRules.plist --entitlements /Users/cagedcoder/Downloads/BubbleLevel/build/BubbleLevel.build/Debug-iphoneos/ BubbleLevel.build/BubbleLevel.xcent /Users/cagedcoder/Downloads/BubbleLevel/build/Debug-iphoneos/BubbleLevel.app
codesign: unrecognized option `--entitlements'
Usage: codesign -s identity [-fv*] [-o flags] [-r reqs] [-i ident] path ... # sign
codesign -v [-v*] [-R testreq] path|pid ... # verify
codesign -d [options] path ... # display contents
codesign -h pid ... # display hosting paths