Current research in augmented, virtual, and mixed reality (XR) reveals a lack of tool support for designing and, in particular, prototyping XR applications. While recent tools research is often motivated by studying the requirements of non-technical designers and end-user developers, the perspective of industry practitioners is less well understood. In an interview study with 17 practitioners from different industry sectors working on professional XR projects, we establish the design practices in industry, from early project stages to the final product. To better understand XR design challenges, we characterize the different methods and tools used for prototyping and describe the role and use of key prototypes in the different projects. We extract common elements of XR prototyping, elaborating on the tools and materials used for prototyping and establishing different views on the notion of fidelity. Finally, we highlight key issues for future XR tools research.