Batch script, how to read exclamation marks in a text file like usual text and save the lines into variables?

I need to read a txt-file in batch script, save every line to variable and use it when delayed expansion is enabled. But the text file can contain exclamation marks, and they should be treated as usual text. I tried this code:

@echo off
setlocal
set file1=C:\BatchTest\TEXT.txt
set "WasFirstLineRead1="
setlocal disabledelayedexpansion
for /f "delims=" %%i in (%file1%) do (
    set "line=%%i"
    if defined WasFirstLineRead1 (
        endlocal
    )
    setlocal enabledelayedexpansion
    echo !line!
    set "line="
    endlocal
    setlocal disabledelayedexpansion
    set "WasFirstLineRead1=YES"
)
endlocal
pause

But it doesn't update the value of the variable line after parsing the first line, it always contains the first line. How can it be fixed?

For example, the txt-file contains this text:

,"H!e!l!l!o! world!,"
,"H!e!l!l!o! "H!e!l!l!o!
world!," world!,"
world!," "H!e!l!l!o!

The output should be the same, but the actual output is

,"H!e!l!l!o! world!,"
,"H!e!l!l!o! world!,"
,"H!e!l!l!o! world!,"
,"H!e!l!l!o! world!,"

I don't see why you build such a complex solution with WasFirstLineRead1

You only need to toggle delayed expansion.

@echo off
setlocal
set file1=C:\BatchTest\TEXT.txt

setlocal disabledelayedexpansion
for /f "delims=" %%i in (%file1%) do (
    set "line=%%i"
    setlocal enabledelayedexpansion
    echo(!line!
    endlocal
)

If you want handle empty lines or lines beginning with ";" you should switch to

@echo off
setlocal
set file1=C:\BatchTest\TEXT.txt
SETLOCAL DisableDelayedExpansion
FOR /F "usebackq delims=" %%L in (`"findstr /n ^^ %file%"`) do (
    set "line=%%L"
    SETLOCAL EnableDelayedExpansion
    set "line=!line:*:=!"
    echo(!line!
    ENDLOCAL
)

For explanations see Batch File: How to read a file?