Even though it sounds like the space is there, the XLE doesn't have an LED strip for the DRL. They only put that on the XSE, Limited, and Platinum.

 

That would explain it. However the lamp sure looks like it has the LED strip so maybe it just needs to be activated. I was following this thread and the person has a 2020 XLE but assuming they changed the LED from strip to projector for the IIHS. However if we share the same assembly as higher trims just without the active bending then I am confident that whitish strip is the LED and just not turned on for the XLE.

 

Not if you look at the above chart XLE is the bottom level headlight pod....others each have unique features such as an LED DRL strip, black accents and LED strip or adaptive self leveling and LED strip. Only one similar has black accents which are not on the XLE. Each have a unique visible features and electrical pinout to support the options and unique ECU controlled wiring integral with switches on the stalk lever.. Same goes for the interior accent lighting strips standard on higher models.This is Toyota.....you ain't getting something for nothing.

You can play with it if you want but they're not in there just like they are missing in my son's Rav XLE compared to stock on my XSE.

 

It would make no sense for Toyota to spend the money to put the LED strip in that housing but then not activate it.

Here's a snip from the 2020 brochure. There were changes to the headlights for the lower trims in 2021 to score better with IIHS, but no change in the DRL strips per trim level for 2021.

 

It makes sense for Toyota to purposely eliminate the DRL strips from lower lines and make headlight pods specific to different trim levels. Saves Toyota pewnnies on the manufacturing end but purposely eliminates owner ability to upgrade to an upper level trim and require modifications should an owner go aftermarket or used......if they want the feature then they are either forced to upgrade and pay for it in a new trim level or package, or purchase new and pay for it.