Get the 16 GB option. Compilation and linking are resource-intensive, and many developers also tend not to be all that patient.
Computers are a hierarchy of speeds and bandwidth, and a balance and trade-offs among the storage tiers.
The processor is fastest (but processor storage is also most expensive and is smallest), the processor cache fast, main memory less fast, main storage on an SSD on a fast connection very speedy, main storage on an SSD on a less-speedy interconnect less speedy, out to hard disk storage (big, cheap, slow) or remote storage slowest.
Interestingly, it can be faster to fetch data from a remote server than fetching from the slower sorts of local storage.
Now…
Trying to map performance and a memory capacity comparison across a different system design can be precarious.
Lots of main memory (RAM) is great when external storage is slower, as you can cache the data from the slow storage in the faster (RAM) storage.
But if your main storage is faster, you need less of it and can use main SSD cheaper storage, as you’re not waiting as much for main SSD storage.
Conversely, if your main storage is a hard disk, you want lots of memory (RAM) to try to mask the (lack of) performance of your storage.
Apple M1 moves the memory closer and faster, and with a very fast SSD connection. Which makes the cache and main memory and main storage trade-offs a little different from those of a computer based on an Intel processor design.
Get 16 GB. Get more storage than you might think you need too, if you plan to keep this for (say) five to seven years. Neither of these can be upgraded. And ~nothing with macOS or Xcode or apps is getting smaller.