0.520 did not support this. From the 0.520 documentation:

OUTPUT

An object blessed into IO::Handle or one of its subclasses (such as IO::File); if this parameter is not present, the module will write to standard output.

Passing a string reference was only introduced in 0.530.

In reply to Re^5: Writing output to a scalar with XML::Writer by ikegami
in thread Writing output to a scalar with XML::Writer by longliveAJ

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