Xcode license agreement requested perpetually

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Created Feb ’16 Participants 2

I updated to Xcode 7.2.1 and since I had Xcode server running i stopped the server, did the update and tried to enable Xcode server again (by selecting new Xcode app bundle). However now I am repeatedly requested to agree to license agreement after launching Xcode: http://imgur.com/7czUp4l

I press "OK" and then launch Xcode, but no license agreement pops up. I launch terminal, type `xcodebuild -license`, scroll down and type `agree` at the very end and redo the Xcode selection, however I get the same alert again and again no matter how many times I agree to license through `xcodebuild`.

I tried reinstalling Xcode and Server apps to no avail. Any help is appreciated.