Hi, I had a look at your blend file. It seems you somehow tied the animation to the circle and parented the boat to the circle, this won´t work because MSFS doesn´t recognize curve objects - I created a new file with a path follow animation and exported it into the gltf format, I also added a MSFS material to your sailing boat because the principled shader procedural material won´t show up in MSFS. I´ll try attach the file so you can see what I did.
In general, you need a scene with your object that you want to animate. then add a curve object, a bezier curve, circle or whatever, and shape it to your liking. Then select your object that you want to follow the path, choose "constraints" in the outliner and select "PathFollow". Then select your curve as the target and check "Follow Curve", you might need to change the Front Axis so that the Obejct doesn't move sideways. THen click on "Animate Path". Now you should see your object follow the path but the animation will only run for 100 frames. To correct this, choose your curve object, select the Curve Properties and under "Path Animation" choose the number of frames you want. The standard framerate is 25 / second so if you choose 250 frames it will take your object 10 seconds to complete the path once. Whatever number you set here be sure that the animation duration in Blenders animation editor is the same. Now your animation runs correctly, you need to Bake it to the model itself. Choose your animated object, select "Object --> Animations --> Bake Action and check the first 4 of the 5 available checkboxes. As frame step I usually selct something between 1 and 5 for short and 5 to 20 for long animations, the smaller the framestep the smoother your animation runs but it will also take longer to bake. Press "OK" and wait for the baking to finish. When it´s done, delete your curve and see if the animation still runs, if it baked correctly you will see the same animation without the curve. Now, go to the animation Tab and choose the "Nonlinear Animation Editor". Next to the Action click "Push Down" to create an NLA Track. Now choose a Name for that track, THAT WILL BE THE ANIMATION NAME in the xml file later, so be careful to use the exact same name in the xml as in the NLA Track. The name of the track itself doesn´t need to be the same as the object your can name it pancake or beverlyhillscop if you want as long as the xml contains exactly that name. Now select your object and export as usual, let the export tool generate an xml for you. Now edit the xml with Notepad++; use the following code:
<?xml version="1.0" encoding="utf-8" ?>
<ModelInfo version="1.1" guid="{The GUID number generated for your model by the export tool}">
<Animation name="name of the xml track" guid="any random guid you can get one from guidgenerator.com" type="Standard" typeParam="AutoPlay" />
</ModelInfo>
Save the xml, add the model to your model Lib and compile as usual, see if the model shows correctly when placed in developer mode.
Cheers, Fabian