@Richard Wilkinson I have used the below logic app and I couldn't observe the issue at my end. I am only assigning the File Content
object to the Body parameter of my HTTP action. You don't have to initialize the variable and assign the File Content. You can directly use it in your HTTP action as I have used in my below workflow.
Logic App Workfow:
The output of HTTP action is the same as below when I have selected Infer content type
as Yes or No. The only changes will be to the Get Blob Content V2 action output i.e one will have the actual XML string as output (when you select Yes) while the other has $content-type and $content parameter (when you select No) in the output of Get Blob Content V2 action.
Output at Function app end:
Hope the above helps you to resolve the issue. Feel free to get back to me if you need any assistance.