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...It goes through the cycle but it doesn't except the remote.
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Might be failing remote or remote working on wrong frequency.
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How can I tell if My 99 avalon xls came with a dealer installed or factory installed keyless remote system?
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Remove glove box compartment.
Find Theft Deterrent ECU located close to ECM (Engine Control Module). ECM has 4 or 5 connectors, Theft Deterrent ECU has 1 wide or 2 small connectors.
If found, you have factory installed security system.
If you cannot find Theft Deterrent ECU close to ECM, you might have dealer-installed security system.
As far as I know, dealer-installed security system block is located under driver's or passenger's seat, or under lower instrument panel cover.
Try to locate security block if you must know what system is installed in your car.
I believe you have factory installed security system on your XLS.
Good luck in searching.