Cannot get XML import to work

So I've been trying to get this XML import thing to work, but despite everything I can find online, I cannot get a simple Import rule to work!

Is there some additional setup I am missing? I have an import rule pointed at a folder and I tossed an "import.xml" file into the folder and the same coding used in the examples and nothing happens.

I know this might be a simple problem I'm overlooking, but thanks for any feedback!

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