'but' is used to suggest contrast, and if you look at this sentence carefully, this sentence, indeed, demands contrast. I used to love playing cricket, but I ended up becoming a soccer star. In your sentence, xyz is, probably, not an animation industry, and therefore isn't the one the speaker wanted to get in; Therefore, he says "I'm in xyz, but you know what * I wanted to do something else *" I don't think we can use and here; 'and' wouldn't suffice.
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