I didn’t actually choose the menu item because it wasn’t going to work because, hey, the Wi-Fi was off. I control clicked on the device and Connect via IP Address shows up in the menu. I disconnected the USB the device moved to the Disconnected section. I enabled Connect via Network on the right.
In Xcode’s Devices window, I selected the device on the left. I turned off Wi-Fi on my device, just to be sure it wasn’t being seen on the network.
Unfortunately I do not see a 'Connect via IP Address' option when I control-click on the device.