That error is from VMWare. You won't be able to use the XML that comes in the download because that XML is for a Hyper-V virtual machine.
If you want to use VMWare (or VirtuaBox) you need to create a new VM, and add the VHD files to it. If you want to import the XML file, you'll need to do it in Hyper-V.
I have had the AX demo VM running in VirtuaBox (but not for a while now). I tend to use Hyper-V only these days.