Racism is highly illegal and punishable in Denmark according the Danish penal codes. The Danish judicial paragraphs criminalize racism and the person who is involved in or encourage racism can be punished up to 2 years imprisonment. There are examples that a few very high profile persons have been punished for violation of racism paragraphs.
There is no racism in Denmark in public offices.
But there are some private citizens are xenophobic, the government is not responsible. But if the crime can be proved, that will be punished. Because of wrongdoing of some private citizen, Denmark as a country cannot be called xenophobic.
Danes are normal humans. Like all other humans, some people are xenophobic. They are minority, Most of the people are friendly to immigrants.
Some unemployed and depressed Danes blame foreigners for their problems. Those people have frustrations and angry feelings towards everything. You can find this type of people can be found everywhere in the world.
Sometimes foreigners also misunderstand danes as racists. If they are losers, they blame Danes for their bad situation.
Racism in Denmark is mostly psychological. One blames another for their blame. Some Danes as well as foreigners are stereotype. Both can be xenophobic to one another. Foreigners also can be racism. I worked at Danish refugee council. I experienced that refugees showed more racism to Danes than Danes showed to refugees.
I have lived many years in Denmark and worked in many places. I have not experienced any xenophobic behavior from any Dane