I'm also facing the same problem.
Exactly as described, I updated Xcode to 13.2 via Mac App Store and its additional components.
Internal error: missingPackageDescriptionModule
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I had this problem for months. I used to have a Dell WD19 Docking station, pure USB-C no Thunderbolt and the only solution was to replace it with a Satechi - Thunderbolt 4 Dock - Model: ST-UCT4DM, it doesn't present any problems as of now. And I have stated in a previous comment that this only happened to my newest MBP
MacBook Pro (16-inch, 2019)
Processor 2.4 GHz 8-Core Intel Core i9
Memory 64 GB 2667 MHz DDR4
Graphics AMD Radeon Pro 5500M 8 GB
Intel UHD Graphics 630 1536 MB
Other older MBP didn't present this problem.
Apple should provide a better solution other than having users buy new hardware and take responsibility for what seems a compatibility problem.
I have 3 different MacBook Pros on Big Sur 11.5.2 that I connect to the same docking station, obviously one MBP at the time, only one presents this problem the main difference is that the one that crashes every time has a 'AMD Radeon Pro 5500M 8 GB' graphics card, whereas the other ones don't only the 'Intel Iris Plus Graphics'.
Surprisingly the one that presents the problem is my most powerful and newest one.
MacBook Pro (16-inch, 2019)
2.4 GHz 8-Core Intel Core i9
64 GB 2667 MHz DDR4
AMD Radeon Pro 5500M 8 GB
Intel UHD Graphics 630 1536 MB
I'm planning to upgrade the docking station with the hopes that a new one fixes the problem, but Apple should fix ASAP for us