The XML holds nearly all of your settings but things like macros may be overwritten if you use the standard Mach profile but have written custom macros. It will only be custom macros that are the same name as the standard Mach macros. What I mean is I have a custom macro for my toolchange, it is named M6Start.m1s, it needs to be named that as thats what Mach looks for. If I was using the standard profile and I upgraded the m6Start.m1s macro would get overwritten by the standard Mach one. I however use a custom profile so Mach does not overwrite it, each profile has its own macros.
Another file you may wish to backup is your tooltable, this is in the macro folder then your profile, it is called Tools3.dat, safest just to copy the whole macro folder for your profile
Same goes for any custom screens you have made.
Hood