Negative binomial modeling of RNA-Seq data
The $\mu_{ij}$ in that section of the DESeq manuscript is the expected value of sample $j$ in gene $i$ given its group association (with expected value $\mu_{ij}$). This is why $K_{ij}$ (this is presumably what you meant by $X_{ij}$) is a function of $\mu_{ij}$, rather than $\mu_{ij}$ itself. I think you're just swapping $K_{ij}$ and $\mu_{ij}$ in your head.