This is how you can do it in XML::XSH2, a wrapper around XML::LibXML. You can experiment with the code in its xsh shell interactively.

my $out := create "TestCode" ;
set $out/TestCode/@version "10.0" ;
set $out/TestCode/TestCategory/@name "SmokeTest" ;

open file.xml ;
cp //Test[starts-with(@name, "CheckType_")][context/value = "XYZ"]
    into $out/TestCode/TestCategory ;

save :f output.xml $out ;
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Or maybe, more simply, remove any Test that doesn't match the criteria:

open 1.xml ;
delete ( //Test[not(starts-with(@name, "CheckType_"))]
       | //Test[starts-with(@name, "CheckType_")][not(context/value = 
+"XYZ")]
       ) ;

save :f 1.out ;
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