XML file under the Project log Folder

That's the log itself, all the record entries in the log in XML format.  Again, you can read it and do what you want... but it's not recommended to alter it. 

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SeumasMack wrote:

tristaanogreIt appears you are answering a question I've been trying to get SmartBear support to respond to.  As my team keeps having merge conflicts with the ".mds.tcLogs" file, I wrote to SmartBear support and asked them if it would be okay for me to include that file in our ".gitignore" file in Bitbucket.  Before doing so, however, I wanted them to confirm for me that I wouldn't be wrecking anything or causing others problems when trying to run tests at a later date/time.  Just to confirm here, mate, you are saying it's okay to ignore the .mds.tcLogs file, correct?

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Yes. 

From the help, indicating files that TestComplete, when integrated with source control, are not included and the reasons why.

Note, that the following files are not added to the source code control:

• .tcCFGExtender - This file holds tester-specific settings for the project suite (such as the workspace layout).

• .tcLS - This file contains tester-specific settings for the project suite or project (such as local paths to tested applications, local values of project and project suite variables).

• .bak - Backup copies of script units.

• .tlb - This is a type library that contains declarations of events used in the project.

• .tcLogs - This file contains information on the project suite or project logs.

• Log files.

• Project item files that are physically located outside of the project suite folder.

To add detail to the .tcLogs files, these actually are a "linking" file for the project indicating which log entries are associated with the MDS file and where to find them.  Everytime a new log entry is created, that file is updated.  Because you don't need to version control/source control log files (they aren't source, they are output), you can safeily ignore them... and any other files in the list I just provided.