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Why is this happening?

Data at root invalid line1 position 1 error in QB POS seems to be from a Mal-formed XML file.

In some cases the XML file will form with a blank line at the top (Line1 position1)

First, try to run a repair install on the program. If the repair install does not fix the issue, then I would recommend uninstalling and reinstalling the software. This should force the software to recreate the XML files intact.