Macbook air 2020 overheating
The device runs internally at the boiling point, so a hot case only implies the CPU is able to run at full capacity. I’ve described it to many people that a proper device often is considered uncomfortably warm by reasonable people that aren’t familiar with how thin and power hungry the internals can be and how efficiently the heat is channeled to the metal case.
This review covers it well. The  i3 version should run the coolest and run the blower less urgently than the i5 or i7 but if you are not doing a stress test like this, I would still engage Apple. Unless your CPU measurement is not showing all the processes, less than 10% CPU should be an idle temp and not a loaded CPU temp of precisely “hot as hell”

https://www.imore.com/macbook-air-2020-review-one-month-later

To validate your CPU be sure to show all processes in the menus and also look at energy usage over time.