@sbrodhead
My Xcode 12.4 with support device 14.3 (18C66) arm64e takes les than 17 Gb, not 28.
I'm not counting the Derived Data and Archives, which you could always move out of the main drive at any time to an external one.
If there is one thing to say about those looking into budgeting a low expensive development setup (like a MacMini for example), do not cut corners on the SSD's space. Aim for 256 Gb at least, it leaves plenty of room for default apps and more to run properly, and invest on some solid external hardware too (storage /w "raid" + surge protection) that you'll be able to keep around for many years.