Device ineligible in Xcode 6 when device connected powered by iOS 8.1

Till yesterday my configuration for devices/tools looked as below

iOS - 8.0.2 
Xcode - 6.0.1 
OSX - Mavericks

I have upgraded by iOS version from 8.0.2 to 8.1 today and when I connect my device to my mac, i am seeing, my device in "Ineligibale Device"

I have looked into similar issues and most of the solution is advised to change the deployment target from 7.0 to 8.0. But I need my deployment target to be on 7.0

I restarted my device and any my mac but still have the same problem. When I disconnect the device and connect it again. I see error message as below in Window->Devices ".. running a version of iOS that is not supported by this version of Xcode"

This I interpret as Xcode 6.0.1 doesn't support devices with iOS8.1. But this looks weird to me. I looked any Xcode update and Xcode 6.1 is only available to install in Yosemite and not in Mavericks. My check and install in Xcode in Mavericks tells me everything is up to date

Any suggestion on how to solve this one? I don't want to change the deployment target as my app should support both 7.0 and 8.0