Here's a partial answer: if $x_1$ is algebraic, then it must be a quadratic irrational of the specific form $\frac14 + \alpha - \sqrt{\alpha}$ for some non-square rational $\alpha>0$.
Proof: Assume $x_1$ is algebraic. Then so is the RHS $\sqrt{x_1}+1$. By Gelfond-Schneider, the LHS is transcendental unless $x_1 \in \{0,1\}$ (which we know isn't the case), or else $x_1 - \sqrt{x_1}$ is rational. Therefore the latter must be true, which means $x_1$ has degree at most $2$. We now eliminate the possibility that $x_1$ is rational.
Suppose that $x_1$ is rational, then since $x_1 - \sqrt{x_1}$ is rational, so too is $\sqrt{x_1}$. Let $\sqrt{x_1} = \frac{a}{b}$ with coprime $a,b >0$. Since we know $x_1$ approximately we can verify by computation that $a,b>1$, and also that the exponent $x_1 - \sqrt{x_1}$ is negative. We thus have
$$\big(\frac{a}{b}\big)^{-Q} = \frac{a}{b} + 1 \implies \big(\frac{a}{b}\big)^{Q} = \frac{b}{a+b},$$
where $Q$ is a positive rational. This is easily seen to be impossible by the rational root theorem or by unique factorization (for instance, consider a prime $p$ dividing $b$, it must appear only on the denominator on the left but only on the numerator on the right).
It follows that $x_1$ must be a quadratic irrational. It is not hard to check that any number in the interval $[0,\tfrac14]$ for which $x_1 - \sqrt{x_1} \in \mathbb Q$ takes the form $\frac14 + \alpha - \sqrt{\alpha}$.
Perhaps someone can extend the argument much much further and eliminate the quadratic irrational case? One can alternatively use computation to prove that $x_1$ cannot be the root of a quadratic whose coefficients are bounded (in magnitude) by $C$ for various values of $C$. The ISC calculation I did above suggests that can probably take $C = 5800$, and integer relation algorithms can take this bound much higher.