Alignment/projection issue when opening a shapefile in ArcMap that was sourced from XML file

I seek to build a UK bus route in ArcMap and am currently attempting to utilise an .xml file sourced from gov.uk.

I have had some difficulty in converting the .xml file into a shapefile.

So far, I have tried converting the .xml file into a CSV file, adding the X Y coordinates (lat, long) to ArcMap to create a point shapefile. The new shapefile layer was then exported. I added the exported shapefile back into the map and defined its Geographic and Projected coordinate systems and then used the ‘Project’ tool to attempt to align it with my basemap. These are:

Projected Coordinate System: British_National_Grid
Projection: Transverse_Mercator
False_Easting: 400000.00000000
False_Northing: -100000.00000000
Central_Meridian: -2.00000000
Scale_Factor: 0.99960127
Latitude_Of_Origin: 49.00000000
Linear Unit: Meter

Geographic Coordinate System: GCS_OSGB_1936
Datum: D_OSGB_1936
Prime Meridian: Greenwich
Angular Unit: Degree

These tools failed to align the shapefile and, despite further attempts to ensure the shapefile shares the desired projected and geographic coordinate systems (manual input via ArcCatalog -> Properties -> XY Coordinate System -> New), this shapefile still fails to align with the map.

Can anyone provide any advice on this process? I am new to using .xml files, coordinate systems and GIS in general.

The .XML file can be downloaded from:
https://data.bus-data.dft.gov.uk/category/dataset/152/
I am focusing on the number ’46’ bus route, which data is included in the JE_46_NMS_PB_46_20200330 .xml file.