Same here for XCode 13. I copied to a the external drive and ran : time xip -x Xcode_13_beta3.xip After 24 minutes it spits out a bunch of errors: 54: Error: failed to write 8992 bytes to /var/folders/lf/khb1n07j4nvf8tgybttqs81m0000gn/T/C063E34F-1D18-446A-8E4F-34E3377C56A7//Xcode-beta.app/Contents/SharedFrameworks/GameToolsFoundation.framework/Versions/A/Resources/animateWithTexture_48.tiff(9) at 0: No space left on device man xip says: --expand <input-file> Expands the archive into the current working directory. This option cannot be used with any other arguments. Oh really? /var/folders/ is not the current working directory.