Hi Lauren, welcome to the forum.
The .xml file looks to be in the correct location.
Unless you have a specific reason to do so, you do not need to use the Manual Sound Set tab with the VDL Template. It's designed to make full use of Sibelius' auto-loading feature.
Can you attach a screen shot of the Active Devices tab? Do you see the sound set in KP5's "Sound Set" drop down list? If not, then Sibelius does not see that VDL is installed and we'll need to help it.
The .xml file looks to be in the correct location.
Unless you have a specific reason to do so, you do not need to use the Manual Sound Set tab with the VDL Template. It's designed to make full use of Sibelius' auto-loading feature.
Can you attach a screen shot of the Active Devices tab? Do you see the sound set in KP5's "Sound Set" drop down list? If not, then Sibelius does not see that VDL is installed and we'll need to help it.