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Xcode doesn't seem to work well for C++ coding in UE5. Auto-completion doesn't work most of the time, syntax highlighting doesn't work and indexing project files takes forever. I've been researching these issues for months, trying really hard to come up with a solution because I love Xcode for iOS/macOS development, but nothing seemed to work.
I finally gave up on Xcode and switched to Rider. And you know what? Everything works smoothly out of the box: code completion, syntax highlighting... It also offers very fast indexing. So, forget about Xcode for UE5. I don't know about VS Code, but Rider works like a breeze and integrates perfectly with the engine.