Any wireless device has antennas that serve as the communication endpoints.
That is the antennas are responsible for transmitting and receiving data. When your phone is in the hotspot mode it acts as a base station. In other words it is in the transmission mode (Tx) for wifi.
To be able to receive the signal at the time you're transmitting you need at least two wifi antennas. If your mobile has it you can do it. If it does not then you can't.
One of the reasons I think phone and chip designers try to limit the number of antennas is that they consume quite a lot of power. You want to maximize the battery life and minimizing the number of operational antennas is one way to do it.
As an OS android which is built on linux kernel has no limitation that prevents any device from transmitting at receiving at the same time. The limiting factor is the hardware.
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