<WKT>POLYGON((-89.326434001719164 41.151389228099951,-89.326406223907568 41.151389228099752,-89.32640622391915 41.151334328651544,-89.326434001707554 41.151334328651316,-89.326434001719164 41.151389228099951))</WKT>
<WKT>POLYGON((-89.326434001719164 41.151389228099951,-89.326406223907568 41.151389228099752,-89.32640622391915 41.151334328651544,-89.326434001707554 41.151334328651316,-89.326434001719164 41.151389228099951))</WKT>
The text value of WKT element looks like an OGC Well Known Text format.
I think the GeometryReplacer with this setting can be used to create a polygon from the text.
-----
Geometry Encoding: OGC Well Known Text
Geometry Source: <attribute name containing the WKT>
-----
If the attribute value is an XML fragment (i.e. including tags <WKT> and </WKT>), remove them before the transformer.
Takashi
http://www.safe.com/solutions/for-applications/esri-arcgis/transformers/
I think it's displayed in your Transformer Gallery like this.
I guess that an attribute (column) of each feature which you read from the source XML stores the WKT.
<WKT>POLYGON(...)</WKT>
or
POLYGON (...)
XML fragment I mentioned means the first text above. i.e. the body of WKT is surrounded by <WKT> and </WKT>. If the attribute value is an XML fragment, change it to the second format (remove <WKT> and </WKT>) before sending feature to the GeometryReplacer.
To see the actual attribute values, consider using the Inspector and / or Logger transformer. If you connect one or both of them to the reader, you can then inspect attribute values read from the source XML.
P.S. if there are multiple <WKT> elements under a <Record> element, WKT texts might be stored as a list attribute (e.g. WKT{0}, WKT{1} ...). If so, you will have to convert the list attribute into individual elements (non-list attributes). You can use the ListExploder transformer to do that.
Anyway, the Inspector and the Logger will help you always, anywhere.
Since I've never used ArcGIS Interoperability Extension, I'm not sure whether there is a specific way to add saved shp or geodatabase to ArcMap automatically. At least, I think you can add the layer to the map manually, after writing shp or geodatabase with the workspace.
List attribute has to be converted to individual elements (non-list attributes) before creating geometries. You can use the ListExploder to do that.
http://docs.safe.com/fme/html/FME_Transformers/Default.htm#Transformers/listexploder.htm
-----
<?xml version="1.0"?>
<root>
<Record>
<WKT>POLYGON(...)</WKT>
<Sibling1>Value1</Sibling1>
<Sibling2>Value2</Sibling2>
...
</Record>
...
</root>
-----
To write those attribute values into the destination dataset, you will have to edit "User Attributes" of the writer feature type. See here to learn more about editing writer feature type properties.
http://docs.safe.com/fme/html/FME_Workbench/Default.htm#editing_writer_feature_type_properties.htm