When I tried to update Xcode 13.2 to 13.3, I hanged, too. After reboot, I had a version full of bugs and missing functionalities. I deleted Xcode and did a fresh install. Now it is running fine.

When I tried to update from Xcode 13.2 to 13.3, it hanged, too. After reboot, I had an executable full of bugs. After deleting this, I did a fresh install, now it is running fine.

It's better not to update because IMHO they published unusable trash.