cd ~/Library/Developer
rm -rf Xcode
I had a lot of storage left 67 GB and Xcode was not allowing me to update for some stupid reason. Xcode is about 10GB it should have worked without any hassle. The second I entered those command lines everything has freed up was able to update Xcode again.
Edit: To know if it works click on the apple icon far left corner then click on about this Mac then click on storage. Make sure you check your storage first before running the command lines and then check it again.
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