Same issue. MacOS 11.2, and Xcode 12.4, on a MacBook Air M1. It has made Xcode unusable, can't click on anything or edit text. If it does work it works for a few seconds and then locks up again.
I've tried deleting the Xcode cache, and deleting Xcode and then redownloading it from the App Store
Topic:
Developer Tools & Services
SubTopic:
Xcode
Tags: