The Genshin Impact Version 1.3 livestream unveiled all sorts of new content coming to the game. However, Hu Tao as a playable character wasn't included, despite rumors suggesting she would be. Based on what was revealed during the livestream, though, there's still a good chance Hu Tao will come to the game before the 1.3 content ends.
Weeks before the 1.3 livestream, Hu Tao had been rumored as a playable character due to an alleged datamine of the game. Those rumors also suggested Xiao would be included as a Banner character for 1.3, which was indeed confirmed during the livestream. But nothing was said about Hu Tao, which left a lot of fans who were hoping for the character disappointed.
Hu Tao is the Director of the Wangsheng Funeral Parlor in Liyue, and she's also Zhongli's boss. Genshin Impact's 1.3 content is centered on the Lantern Rite Festival in Liyue. This seemed to indicate Hu Tao was a shoe-in for a new playable character, since she's such an important part of Liyue's culture. Surprisingly, though, she wasn't included in the 1.3 livestream event. This doesn't mean, however, that Hu Tao won't be added into Genshin Impact before Version 1.3 ends.
When Hu Tao Could Release In Genshin Impact 1.3
During the livestream for Genshin Impact 1.3, Xiao was promoted as a single new playable character coming to the game. This was pretty surprising, since developer miHoYo typically adds in new characters as pairs. Even the 1.2 content had Ganyu and Albedo, even though their releases were staggered. It's very possible that miHoYo is doing the same thing for Version 1.3, even though it hasn't officially confirmed Hu Tao yet.
Xiao will be a new 5-star Banner character in Genshin Impact 1.3, but his Banner probably won't last the entire length of the new update. Typically, Banners only last 2-4 weeks. So, miHoYo will need a new Banner when Xiao's ends - and that could mean Hu Tao will be introduced then. Staggering releases and announcements actually makes a lot of sense, because new playable characters are the lifeblood for Genshin Impact, which relies on people spending real money for gacha pulls to create revenue for miHoYo. So, it's unlikely Xiao will carry the full six-week duration of Version 1.3, and Hu Tao's rumors are simply too strong to just ignore.
For now, Hu Tao hasn't been officially confirmed by miHoYo. She wasn't included in the livestream for Version 1.3, either. However, it seems likely that Hu Tao will still come to Genshin Impact 1.3 at a later date, once Xiao's Banner comes to an end, which means she could arrive in late February. Hopefully, official news regarding Hu Tao will be revealed soon.
Source: Genshin Impact/YouTube