Hey Nikki,
Any particular reason why you launched the Setup instead of the app directly?
Also, was the app running when you ran the setup? This might explain why it gets stuck at “moving it into place” - macOS might not like it trying to replace a running application.
I’m going to try and reproduce that particular problem, then fix it, but in the meantime, you can quit the setup with Cmd+Q and just run itch by doing Cmd+Space, searching for itch and pressing enter.
Edit: I’m not able to reproduce the issue, running itch Setup while itch is running works just fine for me: