The product accepts XML from an untrusted source but does not validate the XML against the proper schema.
Most successful attacks begin with a violation of the programmer's assumptions. By accepting an XML document without validating it against a DTD or XML schema, the programmer leaves a door open for attackers to provide unexpected, unreasonable, or malicious input.
Always validate XML input against a known XML Schema or DTD.
It is not possible for an XML parser to validate all aspects of a document's content because a parser cannot understand the complete semantics of the data. However, a parser can do a complete and thorough job of checking the document's structure and therefore guarantee to the code that processes the document that the content is well-formed.
Automated static analysis, commonly referred to as Static Application Security Testing (SAST), can find some instances of this weakness by analyzing source code (or binary/compiled code) without having to execute it. Typically, this is done by building a model of data flow and control flow, then searching for potentially-vulnerable patterns that connect "sources" (origins of input) with "sinks" (destinations where the data interacts with external components, a lower layer such as the OS, etc.)