Hi @Krystian_Klopocki, welcome to the community!
This is a rather old thread and n8n has changed a lot over the last two years. From your screenshot it also seems you are using a rather old version of n8n. So, in a first step you might want to upgrade to the latest available n8n version.
With the current version of n8n you could read an XML file like so:
In this example I am downloading a dummy XML file rather than reading it from a hard drive. The logic should, however, be the same. The file content is read using the Move Binary Data node which appears to be missing from your screenshot. Afterwards the XML node can process the data as expected:
Hope this helps! If you’re still running into any trouble here, could you open a new topic and provide the information requested in the template when doing so? Thank you so much 