XCODE: NOT ENOUGH SPACE

Free up more storage. The compressed Xcode 12.4 is as large as Big Sur, and you will need a lot more storage than you show.

Your true available storage is found by clicking once on your Macintosh HD drive icon on the Desktop and pressing option+command+i. The menu > About This Mac > Storage panel can pose misleading information and is not as accurate as of the preceding sentence.

KrishnaKamra wrote:

My mackookAir has a space of about 37GB free.....

No it doesn't.

Your computer has 37 GB "available". On a Mac, that is a huge difference. In your case, it is likely a difference of about 37 GB. You are out of disk space.

Xcode, both the app and the hidden files, takes about 45 GB on my computer.