Hi @TRolic1 ,
AEP currently the supports only structured data formats for ingesting like delimited files, JSON, and Parquet file types.
As XML files cannot ingested to AEP there is no point of discussing whether AEP can transform from XML to JSON. If the data that you want to bring to AEP is in XML format then you'll need to have an ETL process to transform it to one of the supported formats before ingestion.
Whether Adobe is planning to add support for XML file type is something that can be confirmed with Adobe support.
Cheers!