XML Filetype with embedded content - character entities are broken

I have this (on the surface) nice looking xml file that we are to translate (en_source.xml):

I have attached the filetype I created (embedded content enabled).

 I have trouble with

  •   as you can see in eg. segments 2, 3, 5, 6, 12, 18…
  •   as you can see in segments 21, 25, 26  (they appear to be Chinese characters in Studio)

Target file:

See attached zip: source file, filetype and target file (copy-source-to-target)...

Best regards,

Torben

eUM_User_Guides_XML.zip