Substituting variables in files is currently not working. I have used the tool in the documentation to verify that my transforms work but Octopus is not substituting the variable in the transformation file its self.
Can you include a full deployment log? The way your XML transforms field is defined is quite strange - if you click the Help icon in the top right, it explains the syntax to use (I’m not sure why all those “True” lines are there).
From the logs I can see that some XML config transforms are working just fine. What’s happening is that the ‘XML Transforms’ setting in your screenshot is configured wrong.
Click the help icon to see how to use that field. You shouldn’t be using #{Octopus.Action[xxyz} references, or True, etc. - it makes absolutely no sense in that text box.