My Environment:
Macbook Air-Big Sur(11.6)
Problem #1:
I have 32 GB available on my Mac, but still, I couldn't install XCode 12.5.1 because of no space.
Solution:
Got an External Hard Disk from my Friend(Support only NTFS-Windows file format), copied the .xip (11GB) file and tried to extract it.
Problem #2:
Since the external hard disk support only NTFS format I couldn't paste or extract the file in it.
Solution:
Installed (https://www.paragon-software.com/home/ntfs-mac/) NTFS for MAC and after successfully installing & Restart I can able to copy and extract the file.
After a couple of attempts, I can successfully extract and copy the Xcode to my MAC and it's working fine.
Me also getting same problem whenever I try to update Xcode. At least it should show update size of any app. It doesn't show update size for any app in App Store. How can we know which update is consuming how much data? If it explicitly asks that I want exactly this much of space for installing updates then we can do something about it. Without showing update size it simply goes on asking for more space for whatever free space we provide. Anyway this problem was encountered when I updated from
Catalina 11.15 to Big Sur 11.0 (trouble moving Xcode from 12.4 (12D4e)) to 12.5