I'm also facing the same problem. Exactly as described, I updated Xcode to 13.2 via Mac App Store and its additional components. Internal error: missingPackageDescriptionModule

I had this problem for months. I used to have a  Dell WD19 Docking station, pure USB-C no Thunderbolt and the only solution was to replace it with a Satechi - Thunderbolt 4 Dock - Model: ST-UCT4DM, it doesn't present any problems as of now. And I have stated in a previous comment that this only happened to my newest MBP MacBook Pro (16-inch, 2019) Processor 2.4 GHz 8-Core Intel Core i9 Memory 64 GB 2667 MHz DDR4 Graphics AMD Radeon Pro 5500M 8 GB Intel UHD Graphics 630 1536 MB Other older MBP didn't present this problem. Apple should provide a better solution other than having users buy new hardware and take responsibility for what seems a compatibility problem.