Grandpa solution: I rebooted. That cleared it up.
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Ditto, and I have more than 42GB remaining on disk. What's the minimum disk space requirement?
You may want to install the VMWare Fusion experimental beta for Big Sur. I've been having some success with it.
You can find it here:
blogs.vmware.com/teamfusion/2020/07/fusion-big-sur-tech-preview.html
Am seeing this problem with tvOS 14.2B3.
I'm a +1. Happening on iOS 14.2 and iPadOS 14.2
Same issue here - XCode 14.3 B3
IOS 16.4 (20E5239b) - iPhone 12 Mini
WatchOS 9.4 (20T5249a) -- Series 6