How do I keep example code in my SPM project from importing into Xcode?

There's no direct support for this, but placing a Package.swift file in the Sample Apps folder should make it so that it does not show up in Xcode.

Unfortunately that didn't work.

To make sure I understand the problem clearly, are you trying to prevent the users of your package from seeing the sample app show up inside the package when they add a dependency on that package and have Xcode fetch it? Xcode will show all the contents of the package's file hierarchy, so there's no way to hide part of its directory contents from Xcode. But Xcode shouldn't try to use that content for anything inappropriate; if that content isn't used by any of your package targets, it should be ignored. Can you clarify why this is a problem?

Your understanding is correct. I believe it's a waste to download unnecessary files and thought there might be a way to prevent it from downloading a part of the hierarchy.

Thanks for the feedback.

Thank you for clarifying! Xcode downloads the entire git repository that hosts a package, so there's currently no way to exclude specific files from being downloaded.