This error occurs because Capture could not deserialize the contents of the XML file into a Capture Job. Even though the file is in XML format, it may not be an actual exported Capture Job file. It could be a custom code file in XML format, an unrelated XML file, or possibly a corrupted XML that was exported from the Capture Job list.

To resolve this follow the steps below:

1. Create a new job or open an existing job.
2. Add a Custom Code step to the job.
3. Under the step properties, select Step Executing in the Custom Code Events [Step Level] section select the ellipsis button.
4. Select Generic Template and the respective language, and then click OK.
5. In the Script Editor Window, select the import button to browse to the questionable XML file.
6. Navigate to the XML file and click Open.
7. If the Script Editor updates correctly, that indicates the XML file was actually Custom Code and not a Job export.
8. If steps 1-7 do not reveal the issue, try opening the XML file in Notepad, and review the XML data to see if this appears to be a Capture Job export. If the XML file will not open in Notepad, it is likely corrupt and unrecoverable.