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According to last note in section 5 (XML Output Method), one paragraph states that NEL must be escaped, while the second paragraph states that non- whitespace control characters other than NEL must be escaped. "...For this reason, NEL and LINE SEPARATOR characters in text and attribute nodes must always be escaped using character references, regardless of the value of the version parameter." "...Therefore, the non-whitespace control characters in the ranges #x1 through #x1F and #x7F through #x9F, other than NEL, MUST always be escaped, regardless of the value of the version parameter." Suggested resolution: remove ", other than NEL," from the second quote.
The working group agreed to remove ", other than NEL," from the 2nd paragraph and also to remove the bolding of the 'MUST' in the Note to make clear(er) that it's just a rationale for the normative text above.