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Plus, why would Xenophon lie to us?
I don't think the use of the word victims of itself necessitates that humans be in view. "The sacrificial victim" can be any living thing which is to be offered in sacrifice. There would need to be more than that in the context to identify the victim as human on any particular occasion.
Now the incident with Agamemnon shows that it did happen. The reaction to it may show that it didn't happen as often or routinely as in some other places.