Xcode 8 APS Environment Entitlement won't set to production

Turn off the "push notifications" in Capabilities then re-build.

Update

After hours of debugging, no matter how you configure Xcode8 or build with whatever scheme(debug or production), you will always get a deviceToken for development environment from APNS. I tried to remove my app on my test device which build directly from Xcode8.1 with production scheme. Then I installed my app from AppStore, which was archived from Xcode8.1 with same configuration two weeks ago, the AppStore version's notification service works fine, which proves that Xcode did set the right entitlement value for production environment. So, the solution is: leave the entitlements file alone, and keep "Push Notifications" switch on in Capabilities, do any fixes Xcode asked for. Hope this would help you.

For me XCode 8 'Automatically manage signing' feature do it automatically & correctly when archiving according to provisioning profile we select for deployment method.

Try to re-enable "Push Notifications" capabilities in , it worked for me, if this don't help, try to delete file with entitlements in your project, and again re-enable "Push Notifications" capabilities in your project settings