Same issue here, tried on Monterey and Big Sur with Xcode Version 13.1 (13A1030d)
Balki
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Looks like it works again without any changes done on my side.
Xcode 13.4.1 is not working even from terminal:
it says: The application cannot be opened for an unexpected reason, error=Error Domain=NSOSStatusErrorDomain Code=-10664 "kLSIncompatibleApplicationVersionErr: The app is incompatible with the current OS" UserInfo={_LSLine=3945, _LSFunction=_LSOpenStuffCallLocal}