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Apple updated their release notes to instruct users to download Xcode from their developer website instead of using the Mac App Store version:

> If you’re using Swift packages either standalone or as dependencies in an Xcode project or workspace, the Mac App Store version of Xcode fails during package resolution with the error “Internal error: missingPackageDescriptionModule (86435800)

> Workaround: Download Xcode 13.2 directly from the Apple Developer website.

https://developer.apple.com/documentation/xcode-release-note...

Yeah, this is a biggie. Almost every developer out there, uses SPM modules.

Looks like it's a bug in the incremental updater.