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I've moved your question from Jaguar Forums Feedback & Suggestion Centre to XK8/XKR forum. This is the place to post technical questions about your model.
No need to remove anything to access the diagnostic port. Run your hand down the outside edge of the dash and you'll feel it.
It is oriented so that it is right next to the front of the driver's door, and low enough that it is below the visible curve of the dash. I've spent two days looking for mine before I found this post.