Are these nested comments allowed in a XML file?
<!-- Making only one observation attempting to correct the error code -->
<!-- <component>
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<!-- <id root="2.16.840.1.113883.19.5.10" extension="103220"/>
</component> -->
No, the string --
is not permitted to appear within comments in XML. So the fact you have --
show up inside another comment is going to cause failures.
And trying to post that answer also broke the text entry parsing ;)
For further proof, check the W3C specification:
http://www.w3.org/TR/2008/REC-xml-20081126/#sec-comments
The phrase
For compatibility, the string " -- " (double-hyphen) MUST NOT occur within comments.]
appears in the first paragraph of the section on XML comments.