These view options are just for the sake of pretty-printing the response to you (as the SoapUI user). Meaning it just applies colors, and alignment etc to make it easy to read. But it is not actually converting anything. And since the content is not XML, SoapUI won't try to pretty-print it as if it were.
It is possible to convert the response to XML using Groovy. Here's one way to do it:
Add an Assertion to the Test Request. Choose Script Assertion as the assertion type, and enter:
log.info messageExchange.responseContentAsXml
Then press the green Play button. The converted response will appear in the Script Log (at the bottom of your SoapUI workspace).