Xcode test target with host application forces wrong target into build section of scheme

When I add a test target that needs a host application in order to run Xcode adds targets that are not associated with the application I added.

I have two schemes (internal & production). I want to run tests on our internal application. When I add the internal application as a host I end up with the production target being added to builds and cannot delete it. If I remove the host application this goes away but the tests also fail.

Does anyone know where I'm going wrong?