OK, one more piece of information: I created a new test account on my MBA and fired up Xcode for the first time and created a new project, just a simple SwiftUI project, a Hello World that would have caused beach-balling in my main account.
It worked fine.
So there's gotta be some cruft in my setup that's causing this problem. I'll check to see if I have any other programs installed that I might have forgotten about, and I'll uninstall the Apple Arcade games, but... any other ideas?
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Just for the fun of it, I removed the watch simulator from the available simulators, then I deleted the com.apple.xcodebuild.plist and the com.apple.dt.Xcode.plist, as well as the com.apple.dt.Xcode directory within my ~Libary/Caches directory.
It's still just as bad. Even opening a project it just locks right up.