Update on Dec 19, 2021: This has been fixed in 13.2.1 of Xcode on the App Store. Update your Xcode app.
- Go to developer.apple.com/download/release/
- Sign in with your developer account
- Choose Applications
- Download Xcode from there
That is actually the workaround given by Apple as well.
How did this happen?
Xcode probably automatically updated from the Mac App Store.