The solution lies in the new option in Xcode which says provisioning profile. Just set the project target's provisioning profile to the right one and it'll work.
I had both Distribution and Release types for provisioning profile. I got this same error and it was because I had a development profile set for the Release type (I had thought I was using the Distribution type and didn't notice the Release type). Once I set that to my distro profile, it worked.
To clarify this answer further, I had been trying to set my provisioning profile and code signing identity at the top level row of each, using the Combined view. Doing so still snapped it back to <Multiple values>. When I expanded both rows, however, I saw the "Any iOS SDK" subrows for each configuration all set to None, although the Debug/Release rows did list the proper profile/signing identity. Archiving in this state still gave me the error, until I explicitly set all the "Any iOS SDK" rows to their proper values.
Hope that solve your problem.