Can't make Xcode 26.1.1 active "because an item with the same name already exists".

Describe the bug

Installed new version of Xcode and tried to make it active. Got the error:

Unable to create symbolic link

“Xcode-26.1.1.app” couldn’t be moved to “Applications” because an item with the same name already exists.

The downloaded version, Xcode-26.1.1.app, is already in Applications.

To Reproduce
Steps to reproduce the behavior:

• Have XCode already installed from the App Store as /Applications/Xcode.app (version 16.4 in my case).
• Set up Xcodes Advanced settings:
• • Install Directory: /Applications
• • Active/Select: Always rename to Xcode.app
• Use Xcodes to install a different Xcode version (26.1.1 in my case).
• • It installs to /Applications/Xcode-[version].app.
• Click Make Active.

Got the error:

Unable to create symbolic link

“Xcode-26.1.1.app” couldn’t be moved to “Applications” because an item with the same name already exists.

Expected behavior
At the step "Click Make Active".

• /Applications/Xcode.app would be renamed to /Applications/Xcode-16.4.app
• /Applications/Xcode-26.1.1.app would be renamed to /Applications/Xcode.app
• XCode 26.1.1 would now be the active version of Xcode.

Screenshots

Version

• OS: 15.7.1 (24G231) on Apple M1 Mac mini
• Xcodes: 3.0.2 (34)

Start with the Make Active flow and the symbolic-link error reported when /Applications/Xcode-26.1.1.app already exists. Reproduce the App Store installation scenario, then verify that the current Xcode.app is renamed to its versioned name and the selected version becomes /Applications/Xcode.app.