Thanks. If your data is HTML, html:parse is the correct choice.
fetch:binary-doc can be used to convert a binary item to a document
node [1]:

let $b64 := xs:base64Binary(<data>PHgvPg==</data>)
return (
  fetch:binary-doc($b64),
  html:parse($b64)
)

[1] https://docs.basex.org/wiki/Fetch_Module#fetch:binary-doc

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