It shouldn't be a problem for XML/XQuery approach.
You just need to make sure that the column data type is VARCHAR(MAX) or NVARCHAR(MAX).
UPDATE
Upon analysis, the resolution for the null value is very simple. The Resolution Note column contains lots of ampersands. It is a reserved character in XML. Unfortunately, this forum doesn't allow to use a CDATA section in the source code. That's why I had to remove it.
Please see it in the picture. You would need to add CDATA to the T-SQL statement, in 4 spots
After that everything will work.
P.S. I complained about it to Microsoft many times to no avail.
UPDATE #2
I optimized the XQuery FLWOR expression. The duration now is around 100 milliseconds instead of minutes!
XQuery fragment
for $x in /root/r/text()
return if (substring($x, 1, 4) eq "http") then
concat("<br><br><font color=""blue""><b>", $x, "</b></font><br><br>")
else data($x)