Can't run iPhone simulator - file "Logs" couldn't be saved

iPhone simulator doesn't work. Displays error message:

The file “Logs” couldn’t be saved in the folder “Library” because a file with the same name already exists.

When /Logs dir is empty, simulator creates subdir CoreSimulator/[AppID] and dispalys the above message. It's fresh OS X Yosemite, installed on new Mac Mini.

Any idea how to fix this issue ?