Is there a CarPlay Simulator available in Xcode or from another source? I would like to view if my current app has any interaction with it such as how notifications received from my app are displaying.
This can be anwered with both yes and no.
Yes, as in: there are emulators and tools available for Carplay, but only for companies that have enrolled in Apple's MFi Program.
No, as in: it is very likely not available for you or your company, unless you or your clients have multiple manufacturer plants.
If you want further details, I've added a longer answer in the SO question Is iOS CarPlay API Public? How to Integrate CarPlay?.
That being said, there is mentioning of some users who have successfully enabled the Carplay simulator with XCode, like in this question.