Short Answer
You can not directly use the XCF file format in LaTeX, see here for an overview of supported formats.
I assume that you just exported the GIMP picture "wrong", I have good experience with PDF format or PNG format, or even JPEG format (given a good enough resolution).
Longer Answer (Copied From Wikipedia)
XCF, short for eXperimental Computing Facility,2 is the native image
format of the GIMP image-editing program. It saves all of the data the
program handles related to the image, including, among others, each
layer, the current selection, channels, transparency, paths and
guides.
[...]
Despite some use in other programs [...], the use of XCF as a data interchange format is not
recommended by the developers of GIMP, since the format reflects
GIMP's internal data structures and there may be minor format changes
in future versions. Instead, a collaborative effort between the
developers of GIMP and Krita is underway to design a standardised
raster file format called OpenRaster (modelled on the OpenDocument
format) for future use in both applications, and likely in others
also.
.xcfs. Does the quality also decrease drastically if you export the image as.jpgwith higher quality settings,.pngor.pdf(depending on the type of image one of the formats might be more appropriate than the others). Very relevant: https://tex.stackexchange.com/q/1072/35864 – moewe Feb 28 '19 at 11:58