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The spec says that the default for the second argument of resolve-uri() is effectively static-base-uri(). But static-base-uri() can return an empty sequence (if the static base uri is absent), while resolve-uri() does not accept an empty sequence here, and instead is defined to raise an error if there's no static base URI.
Considering the title of this bug, should this not have a component specification of F&O?
The editor was asked to propose a resolution. The proposed resolution is to replace the rule If the second argument is absent, the effect is the same as calling the two-argument function with the value of fn:static-base-uri() as the second argument. by If the second argument is absent, the effect is as follows: * if the static base URI property in the static context is non-absent, it is used as the effective value of the second argument * otherwise, a dynamic error [FORG0002] is reported.
Accepted with the caveat that if the first arg is an absolute URI, resolve-uri() should succeed even if there is no known base URI.
The changes have been applied.