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The tool you're describing is `xmllint --format`.

Not quite. `xmlint --format` can introduce unwanted spaces. Consider this example.

hello!

`xmllint --format` adds a space between the 'o' and the '!'.

Is there a way to reformat XML without introducing space?

I think so. Technically you can put linebreaks and whitespace within XML tags.

AFAIK this is only a problem with html

Notepad++ also has a lot of plugins.

This, I use the XML and JSON pretty print plugins daily.