Environment variable not recognized when used for reusable workflow in github actions

In the below workflow github actions when I'm able to print and get the value of environment variable XML_PATH in a different JOB but the same variable XML_PATH errors as unrecognized when used in a different JOB having reusable workflow.

How is the job(PRINT_VARS) having reusable workflow any different from a job(READ_VARS_FROM_XML) that runs-on when accessing variables like XML_PATH

---
name: CICD_RECYCLE

env:

  storeserver: "remotehost"
  REPO_NAME: ${{ github.event.repository.name }}
  ENVIRONMENT: ${{ inputs.ENVIRONMENT }}
  XML_PATH: "\\\\$env:storeserver\\D$\\Jenkins\\$env:REPO_NAME\\$env:ENVIRONMENT"

on:

  push:
    branches:

      - "develop"

  workflow_dispatch:

    inputs:

      ENVIRONMENT:
        type: choice

        options:
          - qa
          - dev
          - test
          - prod

jobs:

  SETVARS:

    runs-on: 'mywindowsrunner'

    outputs:
#      outputxmlpath: $env:XML_PATH
      myvar: ${{ inputs.ENVIRONMENT }}

    steps:


      - name: Set environment variable for XML_PATH
        run: |
          echo "XML_PATH=$env:XML_PATH">> $env:GITHUB_ENV

  PRINT_VARS:

    needs:
      - SETVARS

    runs-on: 'mywindowsrunner'

    steps:

      - name: Powershell to export variables to ENVIRONMENT
        run: |
          echo "XML PATH: ${{ env.XML_PATH }}"

  READ_VARS_FROM_XML:

    needs:
      - SETVARS

    uses: mybank/betech/.github/workflows/extractfromxml.yml@mm365
    with:
      xml_Path: "${{ env.XML_PATH }}\\web.Parameters.xml"
#      xml_Path: '${{ needs.SETVARS.outputs.outputxmlpath }}'
    secrets: inherit

Output for PRINT_VARS:

XML PATH: \remotehost\D$\Jenkins\betech\qa

Error for READ_VARS_FROM_XML:

    Invalid workflow file: .github/workflows/main_recycle.yml#L85

The workflow is not valid. .github/workflows/main_recycle.yml (Line: 68, Col: 17): Unrecognized named-value: 'env'. Located at position 1 within expression: env.XML_PATH

As you can see in the output ${{ env.XML_PATH }} prints the values fine in job PRINT_VARS whereas it errors when used in job READ_VARS_FROM_XML.

We can get the variable using outputs but I wanted to use env variables.

Kindly suggest.

The solution is to pass the environment variables as the output of a job, like here