Windows Mobile uses multiple different file types for apps. Here is a guide to all of them.
XAP files are application packages created with Microsoft Silverlight. Support for XAP apps was introduced in Windows Phone 7.
APPX files are application packages created using Microsoft Visual Studio. Support for APPX apps was introduced in Windows Phone 8.
APPXBUNDLE files are application package bundles containing multiple APPX files, primarily different variants of the same app for different architectures or languages. Support for APPXBUNDLE apps was introduced in Windows Phone 8.
Windows Mobile app packages are all stored in ZIP format, so extracting them is very easy. Most app packages can be renamed to .zip and then extracted. Software like WinZip (Windows) and The Unarchiver (MacOS) can also extract app package files.