XML file with embedded content - how to exclude text from translation

I've got an XML structure with nodes like this one:

<p id="260">This document covers the &lt;Model&gt;.</p>

I want the content of the <p> nodes to be translated, except for &lt;Model&gt.

I've set up an XML (Legacy Embedded Content) file type. In the Parser rules, <p> is set as translatable.

In Embedded Content (Legacy), I've set:

- checked Enable embedded content processing

- Document structure information: added a custom type named "Variable"

- tag definition rules: start tag&gt;  end tag &lt;  Tag pair, Not translatable.

Now in my preview, I expect a segment "This document covers the "

Instead, I get "This document covers the <Model>."

So my embedded content isn't being filtered out. I'm doing something wrong, but what?

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<?xml version="1.0" encoding="UTF-8" ?>
<?xml-stylesheet type="text/xsl" href="AuthorIT.xslt"?>
<AuthorIT version="20.3.1.40442" xmlns="http://www.authorit.com/xml/authorit" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.authorit.com/xml/authorit AuthorIT.xsd">
<Objects>
<Book wordcount="25">
<Object>
<Description>Headers and Footers</Description>
<GUID>9e6905caaefa4b019204e85a0bd8789e</GUID>
<ID>6116</ID>
<VariantParentID>4091</VariantParentID>
</Object>
<ContentsNodes>
<Node id="4092"></Node>
<Node id="4093"></Node>
<Node id="4094"></Node>
<Node id="11821"></Node>
</ContentsNodes>
<VariableAssignments>
<VariableAssignment>
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
AIT variables test filter.zip