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In 19.8.8 the proforma for fn:trace is given as fn:trace(A, A) It should be fn:trace(T, A) because the function returns the value of its first argument unchanged.
The WG discussed this during the ftf meeting in Prague and accepted the proposal made in the bug description.
Fixed in the 3.0 version of the function catalog. Note: the XSLT build is picking up these details from the F&O function catalog, but the details have not been transferred to the 3.1 catalog. It would probably be better to extract them to a separate catalog file under XSLT control.