If you look at the whole error message, it almost certainly tells you exactly what to do to fix it:
"For security reasons DTD is prohibited in this XML document. To enable DTD processing set the ProhibitDtd property on XmlReaderSettings to false and pass the settings into XmlReader.Create method."
So either do that in the app that processes it, or don't generate document type declarations in your documents when you create them:
XmlReaderSettings xrs= new XmlReaderSettings();
xrs.ProhibitDtd = false;
And pass that to your Create method.