I'd say that when you run your command from the batch file, the ABC.xml file is in the same directory as the batch file?

In your active setup command, put then full path to the ABC.xml as it won't know what the working directory is.

E.g. copy "%PATHFORSOURCE%\ABC.xml" "%USERPROFILE%\Local Settings\Application Data\Computer\ABC.xml" /Y

That should do the trick.

Alternatively, if you're using a MSI, a normal active setup should handle this for you if you've setup your MSI correctly.

you can try the same command using cmd.exe /c /s.
Modify stubpath accordingly

e.g. cmd.exe /c /s "c:\WINNT\system32\notepad.exe"