My Environment:
Macbook Air-Big Sur(11.6)
Problem #1:
I have 32 GB available on my Mac, but still, I couldn't install XCode 12.5.1 because of no space.
Solution:
Got an External Hard Disk from my Friend(Support only NTFS-Windows file format), copied the .xip (11GB) file and tried to extract it.
Problem #2:
Since the external hard disk support only NTFS format I couldn't paste or extract the file in it.
Solution:
Installed (https://www.paragon-software.com/home/ntfs-mac/) NTFS for MAC and after successfully installing & Restart I can able to copy and extract the file.
After a couple of attempts, I can successfully extract and copy the Xcode to my MAC and it's working fine.