You are looking at the HTML representation of the XML format.
HTML is good for debugging, but is unsuitable for application use.
Specify the format parameter to change the output format.
To see the non HTML representation of the XML format, set format=xml.
See the complete documentation, or API help for more information. 
<?xml version="1.0"?>
<api>
  <query>
    <gadgets>
      <gadget id="ReferenceTooltips" desc="&lt;a href=&quot;/index.php?title=Mw:Reference_Tooltips&amp;amp;action=edit&amp;amp;redlink=1&quot; class=&quot;new&quot; title=&quot;Mw:Reference Tooltips (page does not exist)&quot;&gt;Reference Tooltips&lt;/a&gt;: hover over inline citations to see reference information without moving away from the article text">
        <metadata>
          <settings default="" category="">
            <rights />
            <skins />
          </settings>
          <module>
            <scripts>
              <script>Gadget-ReferenceTooltips.js</script>
            </scripts>
            <styles>
              <style>Gadget-ReferenceTooltips.css</style>
            </styles>
            <dependencies />
            <messages />
          </module>
        </metadata>
      </gadget>
    </gadgets>
  </query>
</api>