When you open xcode 13.4.1 make sure you go to the menu "About Xcode" and check which version number opened. A few times when i was getting started, i noticed if i clicked to open xcode 13, xcode 14 opened because it was in the background. Try doing a force quit on any xcodes that are running before running xcode 13.

The rejection may be correct -- however, if there is a tool that "contains pre release software" (like XCode 14 with iPad OS) and that software was not allowed to be used, it should never have made it to the appstore/as-an-update. The error was the release of xcode 14.