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> SDKs and simulator OS disk images for macOS, iOS, watchOS, and tvOS

Yes, the vast majority of Xcode's size comes from inside the folder Xcode.app/Contents/Developer/Platforms

Android Studio is better in this regard, there's an SDK manager so I don't need to have watchOS/tvOS installed when my apps don't target it

You just need the Studio that actually works, the "stable" to try stable updates, then the beta and canary versions to try out stuff that take months or even years to arrive to stable and still bork on first stable release.

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