Can macOS Monterey 12.7.3 deploy an iOS app to the iPhone which is running on the latest iOS (17.3)?

Can I deploy an app on an iPhone running the latest iOS version (17.3) using macOS Monterey 12.7.3?

I'm working on a project, and before me, another guy created a prototype iOS app that ran on an iPhone XR. At the time, the iOS version was 16.

Now I wanted to update some code, but when I tried to deploy it to the same iPhone (which is currently running iOS version 17.3), it said I needed to update to the most recent version of Xcode. But in the Mac app store, it shows that my apps are all updated, and when I manually tried to install the latest version of Xcode, it says, "You can't use this version of the application "Xcode" with this version of macOS."

What should I do now?