What’s the difference between text/xml vs application/xml for webservice response

This is an old question, but one that is frequently visited and clear recommendations are now available from RFC 7303 which obsoletes RFC3023. In a nutshell (section 9.2):

The registration information for text/xml is in all respects the same
as that given for application/xml above (Section 9.1), except that
the "Type name" is "text".

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