Are you by any chance on an iPhone hotspot or a network with Low Data Mode on? macOS marks those as "constrained" and the download daemon (mobileassetd) silently stalls large asset downloads — Xcode just shows "preparing to download" forever. Had the exact same issue; switching to regular Wi-Fi (or turning off Low Data Mode in System Settings → Wi-Fi → your network → Details) made it download immediately.
Topic:
Developer Tools & Services
SubTopic:
Xcode