yup, would use the desert trick, and bury as much wood as you can. planting fungus will really help hold the sand together, and trapping the water in buryed wood
should help further down hill too.
just build the swales so they let the heaviest rain overflow the sides easily, but only flow down to the next swale, so you don't let the water get up much speed. get some thyme planted as soon as you can in the edges next to the pathways and openings to the next level. wooly thyme works best out here, can handle direct Arizona sun, and poor soil. YMMV.
Big log downhill side, med wood, brush. will end up terraced as it breaks down.
Grapes will grow well as starters is sand too, if they have a water bank.
Wouldn't try retention dam on the slope until you have
trees to hold the hill together.
Once all the swales are rotting down, would be tempted to cut into the hill above, building a buried rock reservoir, with a courtyard over it. sandstone pavers with drains to fill it.
Might stagger them so you can get a tiller or quad or Bobcat up at a diagonal thru them, so you aren't tempted to cut straight paths.
if you could get SOME clay, to put on the backside of the swales, to hold everything in place, would
be nice.