Use non-printable characters in SQL Server BCP xml format file as TERMINATOR
It seems, from the documentation about BCP - Specify Field and Row Terminators (SQL Server), that non-printable characters are not supported:


  Characters Supported As Terminators
  
  The bcp command, BULK INSERT statement, and the OPENROWSET bulk rowset
  provider support a variety of characters as field or row terminators
  and always look for the first instance of each terminator. The
  following table lists the supported characters for terminators.




As an option, you could use POWERSHELL to read in the source file and search\replace the 0x1C characters with some other character like a tilda (~) and output to a different file.  Then use that character as your terminator.

(Get-Content c:\test\test.txt) | ForEach-Object {$_ -replace [char]0x1C,'~'} | Set-Content c:\test\testout.txt