I have the same vehicle, 2002 Yukon XL 5.3l, and the same piston slap. Sounds like lifters pumping up, would slap like crazy for about 15-20 seconds and quiet down, but could always make out a tick, tick, tick. The Yukon now has 45,000 miles. Asked the stealership to fix it about a hundred times while it was under warranty. They claimed it to be carbon buildup and normal.
The first oils I tried were M1 and Castrol Syntech. 3,000 OCI religously changed. Kept getting worse and worse. Especially the tick.
At about 34,000 I put Amsoil S2k 0w30 in it and noticed significant improvement in all running aspects. Still had some slap, but Amsoil helped, and cured the tick.
The thing I have found that helped it most is an Auto Rx cleaning, which I am in the middle of the rinse cycle now. The slap was down to 2-3 seconds within a few hundred miles.
And I am running my second tank of fuel with FP60 which seems to smooth it all out. Slap is almost gone. FP60 also seems to have helped the power, seems to have added a little zip to it.
This vehicle is a great car! Probably the finest automobile I have owned. My first GM, been driving 30 yrs. Drove it from NC to CA, set the cruise on 85 and rolled! We regularly pack 7 adults and tailgating gear in for football/basketball games.
To answer the Toyo fans above....
I had a '98 Toyota 4Runner V6 and cured my ails by replacing it with a GMC Yukon. The 4runner had a max speed of 78mph on flat land with two people aboard. The Yukon is a tremendous improvement and we only sacrificed about 2 mpg. The 4runner was 2wd and the Yukon is 4wd, so thats the 2mpg in my book.