Take a look at src/compiler/scala/tools/nsc/ast/parser/SymbolicXMLBuilder.scala and the result of parsing the XML literal.
scala -Xprint:parser -e '<node/>' new _root_.scala.xml.Elem(null, "node", _root_.scala.xml.Null, $scope)
Ideally, this moves somewhere under scala.xml ; try and see what happens.
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