In Fenix, visit https://github.com/mozilla-lockwise/lockwise-addon/releases and long press on a .xpi file found in any Assets section of each release.
File downloads
Nothing happens
GeckoView doesn't seem to fire a download event for .xpi files. \
Filed Bug 1571314
Gecko might be short circuiting .xpi links or GV might be ignoring some XPI install event from Gecko. But downloading untrusted third-party extensions in Fenix is a very low priority since Fenix+GV doesn't even support installing extensions from AMO yet.
The GV bug is a P3.
I can reproduce this download bug in Fenix and Focus+GV. Downloading the xpi in Fennec triggers a warning dialog: "Blocked add-on. Firefox prevented this site (github.com from asking you to insall software on your device. DISMISS / ALLOW".
That suggests this bug is either a bug in GV or Fenix's download manager.
Fenix's download manager never gets executed as onExternalResponse is never called by GV.
@vesta0 what priority is downloading .xpi files? (.xpi is the file format for Mozilla addons, so I assume users are downloading them from sites and trying to install them in Fenix)
This looks like GV needs to add some extra APIs, so getting a priority from Fenix will help them prioritize against other work.
I tested on nightly and I was able to download .xpi files. At the moment, the only way to install add-ons is through the add-on manager UI.

Since @Amejia481 was able to download a .xpi file, lets verify with QA and close this issues. Other issues can track installing the file.
Verified as fixed on the latest Nightly 8/21 with Google Pixel 4 XL (11).
Note that I was able to download .xpi without problems.
@NotWoods can we remove the needs:gv label too?