The MARCXML included in the ILS-DI response for GetRecords includes the XML declaration (<?xml version="1.0" encoding="UTF-8"?>) which -- as I understand it -- should not be repeated.
Also, the MARCXML is escaped to use entities instead of actual XML.
I am not sure if this is a bug. We include a possibly 'bad' MARCXML in an XML answer, so the use of entities seem like a necessary safeguard to me?
I think I agree with Jared here, although I have to wonder if anyone actually uses this marcxml value anyway...