The solution was to use XmlFile (thanks to new_s)

<util:XmlFile Id="ModifyIsCompanyServer"
                      SelectionLanguage="XPath"
                     
File="[INSTALLFOLDER]Company.Enterprise.Management.dll.config"
                     
ElementPath="//applicationSettings/Company.Enterprise.Management.Properties.Settings/setting[\[]@name='IsCompanyServer'[\]]/value"
                      Action="setValue"
                      Value="true"
                      Sequence="1" />



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