Prompt "can't exec xcodebuild Operation Not Permitted" after Upgraded Xcode to 12.4 with macOS Catalina 10.15.7

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I am upgrading one of my dev machines to macOS 10.15 (last intel platform) to increase compatibility.

From following webpage: https://xcodereleases.com/, I noticed last compatible version with macOS Catalina 10.15.7 was Xcode 12.4. So I downloaded and replaced the original one from /Applications folder. enter image description here

But I encountered some issues after upgrading Xcode, I have tried to launch Xcode via spotlight, but there is no response. So I tried to launch via terminal command line and get following error.

sudo xcodebuild -license accept
xcodebuild: error: can't exec '/Applications/Xcode.app/Contents/Developer/usr/bin/xcodebuild' (errno=Operation not permitted)

I used xcode-select to print Xcode path and version, seemed everything looks fine. Has anyone encountered similar issues before and help me with this? Thanks.

xcode-select -p
/Applications/Xcode.app/Contents/Developer
xcode-select -v
xcode-select version 2373.
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