If I delete my cache does it affect my Terminal

That has nothing to do with the cache.

You have code in one of the files that zsh runs automatically that is calling xcode.

Most likely it is one of these two files:

~/.zshrc

or

~/.zprofile

To see these files in Finder, open your home folder (command-shift-H), then press Command-Shift-period to make Finder show hidden files (they appear in grey).

Control-click on .zshrc and choose Open With->TextEdit. Select All, Copy, and post here in a reply.

Do not change anything in this file.

What are you trying to do when you get that error? The error suggests you are trying to do something that requires Xcode - although usually that would trigger a pop-up asking if you want to install Xcode or Xcode's Command Line Tools, depending on what tool you were trying to invoke.

Easy enough to determine what your PATH is currently, using:

echo $PATH