@Sourav As of the latest information available, Azure Data Factory (ADF) does not support XML as a sink. This means that while ADF can read data from XML files, it cannot write or output data in XML format.
You can also try using the query in copy activity source which returns XML format and in sink change the file extension to .XML
Refer to this blog post SO
However, features are constantly evolving, so it’s always a good idea to check the official Microsoft documentation or Azure updates for the most recent information.
https://learn.microsoft.com/en-us/azure/data-factory/format-xml