As DandDI said, you don't need xcopy. for statement helps much. However, you don't need to state process outcome of dir command as well, this command helps better
for /R c:source %f in (*.xml) do copy "%f" x:destination
By the way, when you use it from a batch file, you need to add spare % in front of variable %f hence your command line should be;
for /R c:source %%f in (*.xml) do copy %%f x:destination
when you use it within a batch
- Should surround %f with double quotes otherwise it will fail copying file names with spaces
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