Unreal Engine Doesn't Recognize Xcode

I have downloaded the newest version of both Unreal Engine and XCode, but when launching Unreal, I get a pop-up that says XCode is not installed on my Mac. I have made sure it is in the Application folder and have gone through all of the necessary steps (I believe) that are required from the XCode aspect.

Can someone please help me get Unreal to recognize it? Let me preface this request by also stating I am absolutely brand new to the idea of creating a game, so need as much detail as you can offer.