Running the latest Mac OS beta. I have downloaded the image twice but same result.
The error from the command line is: xip: error: The archive “Xcode_13_Release_Candidate.xip” is damaged and can’t be expanded.
The error when using the Archive Utility is about not enough space but I have more than 100GB available.
Restarting the Mac doesn't help.
Same issue for me, but on macOS Big Sur 11.6.
Any chance you downloaded the xip file with Chrome? If so, try downloading with Safari. Saw this suggested in another thread so I tried it out and it solved the issue for me, xip extracts and Xcode 13 installed.
It may be the program you are using to unzip the archive. Instead of just clicking it, try right clicking it (or holding down the control key while clicking) > Open with... > Archive Utility. The app icon is pretty much a green square.
Starting in macOS 10.9, Apple released their own version of the common .zip file, but added a few layers of security. Trying to open it with anything other than Apple's software will result in an error. They did that to make sure the archive is intact and hasn't been altered.
Hope that helps!