You are looking at the HTML representation of the XML format.
HTML is good for debugging, but is unsuitable for application use.
Specify the format parameter to change the output format.
To see the non HTML representation of the XML format, set format=xml.
See the complete documentation, or API help for more information. 
<?xml version="1.0"?>
<api>
  <query-continue>
    <alltransclusions atcontinue="Blood_on_the_Tracks_(Story)|162" />
  </query-continue>
  <query>
    <alltransclusions>
      <t ns="10" title="Template:Before the Dawn (Story)" />
      <t ns="10" title="Template:Before the Dawn (Story)" />
      <t ns="10" title="Template:Beneath the Waves (Story)" />
      <t ns="10" title="Template:Between Two Worlds (Story)" />
      <t ns="10" title="Template:Between Two Worlds (Story)" />
      <t ns="10" title="Template:Blood Price (Story)" />
      <t ns="10" title="Template:Blood Price (Story)" />
      <t ns="10" title="Template:Blood Price (Story)" />
      <t ns="10" title="Template:Blood Price (Story)" />
      <t ns="10" title="Template:Blood on the Tracks (Story)" />
    </alltransclusions>
  </query>
</api>