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?

<?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>
					<ID>70</ID>
					<Name>Model_Number</Name>
					<Value>300</Value>
					<ValueObject>0</ValueObject>
					<Style>-1</Style>
					<PublishPrompt>true</PublishPrompt>
					<IsVariantCriteria>false</IsVariantCriteria>
				</VariableAssignment>
			</VariableAssignments>
			<PrintByLine>Art. No.: &lt;Article_Number&gt;</PrintByLine>
			<PrintVersion>&lt;Version&gt;</PrintVersion>
			<WebVersion>&lt;Version&gt;</WebVersion>
		</Book>
		<Topic wordcount="1">
			<Object>
				<Description>Back Page</Description>
				<GUID>390099a7512b4ba79fa2245641714d47</GUID>
				<ID>6205</ID>
				<VariantParentID>4113</VariantParentID>
			</Object>
			<Headings></Headings>
			<RelatedGroups></RelatedGroups>
			<Text>
				<p id="254">&lt;Version&gt;</p>
			</Text>
			<VariableAssignments></VariableAssignments>
			<PrintSuperHeading></PrintSuperHeading>
			<WebTitle></WebTitle>
		</Topic>
	</Objects>
</AuthorIT>
AIT variables test filter.zip

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