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This test expects XD0026. Because the variable, evaluation of which would trigger XD0026, is not used, this test may also expect the empty sequence.
Section 2.5 (Environment): """ Unless otherwise specified, the environment of a contained step is its inherited environment. [Definition: The inherited environment of a contained step is an environment that is the same as the environment of its container with the standard modifications. ] The standard modifications made to an inherited environment are: [...] The *names* and *values* from *each* p:variable present at the beginning of the container are added, in document order, to the in-scope bindings. A new binding replaces an old binding with the same name. See Section 5.7.1, “p:variable” for the specification of variable evaluation. """
I' not sure how this is relevant. Unless XProc differs from XSLT/XQuery/XPath and does not permit lazy evaluation, a test which sinks all observable output need never do anything.
We concur; we'll rewrite the test so that it requires evaluation of $var.