When I run my ios8 action extension on the iPhone simulator it gives me a list of apps to act as host, but it only offers 'today' and my own app even though I have specified the following in NSExtensionActivationRule in the plist: NSExtensionActivationSupportsImageWithMaxCount:1 NSExtensionActivationSupportsWebURLWithMaxCount:1
so I would have expected safari, photos etc.
You may want to forego launching the extension directly from the simulator.
I've been debugging extensions all week and what I'd suggest is this (not too long) process:
I would recommend binding that menu item to a keyboard shortcut (I used Opt-Shift-Cmd-A because I hate my carpal tunnel) because it's two items down and the stupid attach menu loads all the active process AFTER it opens so the item you want jumps to the top of the screen.
Once you load the extension you can keep re-attaching to it if it crashes without having to relaunch the containing app.
This has sped up my debugging process quite a bit.