You need to specify XMLConfig/@Node='value' and XMLConfig/@On='install'

<util:XmlConfig File="[#MT.web.config]" Id="xmlRptServerConnectionString"
 Action="create"
Node='value'
On='install'

ElementPath="/configuration/connectionStrings/add[\[]@name='ReportServerEntities'[\]]/@connectionString"
Value="metadata=res://*/ReportServerModel.csdl|res://*/ReportServerModel.ssdl|res://*/ReportServerModel.msl;provider=System.Data.SqlClient;provider
connection string=&quot;Data Source=[SQLSERVER];Initial
Catalog=ReportServer;Integrated
Security=True;Pooling=False;MultipleActiveResultSets=True&quot;"
/> 



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