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The note in section 11.1.2 (Attribute Nodes for Literal Result Elements) should read: "The significance of this order is that an attribute produced by an xsl:attribute <new>, xsl:copy or xsl:copy-of</new>instruction in the content of the literal result element takes precedence over an attribute produced by expanding an attribute of the literal result element itself, which in turn takes precedence over an attribute produced by expanding the xsl:use-attribute- sets attribute. "
I don't think this change is really necessary - the note as written is true, and notes don't have to be exhaustive. I don't really mind either way.
The change has been made.