The XML functionality was added in release 11.x and therefore is not valid/is not in the product under release 6.4 - or under compatibility mode under release 11.x as running in compatibility mode is the same compiler as used for release 6.4.
So, that being said, you can run this under true release 11.6 successfully. The JOB06OP1 and JOB06OP2 jobs in your CBAAJCL library can be run first to create a second option file, EZOPTBL.
Please make sure that NEWFUNC is set to Y for that parameter value and then include that //EZOPTBL DD statement in your one program which is using XML on your REPORT statement.