I was having the same issue and the posts from both Frank and Mathew were very helpful. I also found my missing xml in another location. Mine were in C:\Program Files (x86)\ArcGIS\. Once I copied the xml outputs in the correct directory, they then began appearing in c:\.
To get it to work properly, I made sure I was navigating to the desired output location in the command prompt prior to running the command to run the tool. In the image below, you'll see that I navigated to c:\MapTest first.
This appears to have fixed all the issues.
Hope this helps!