Probably not. The XMS kit is old 1.65v DDR3 1600 while the Vengance kit is the newer 1.5v DDR3 1600 standard.
Do not use the 1.65v stuff with a LGA 1155 Sandy Bridge processor. The memory controller is on the actual CPU with these chips and they should be run with 1.5v memory only. You are fine running 1.65v RAM with an AMD build or with an LGA 1156 or LGA 1366 setup though.
Of what malfunctioning? 32GB of RAM? No, if the board supports it then it will run it. The only reason to even consider that much RAM is if you work with photo or video editing or other software that involves huge files. Or if you wanted to create a RAM disk. For a gaming machine 8GB is fine and even 4GB will work fine for most games.