XPI file appears to be corrupt, sideloading from a website download

Is the xpi signed? It needs to be signed in order to install it. This is a simple process.

Also. I see you want to host it on your own web site. If you set the "Content-Type” header to “application/x-xpinstall” then it will install it without downloading it to the disk. This only happens if the extension is signed.

Here is another thread with a similar issue.