This is an archived snapshot of W3C's public bugzilla bug tracker, decommissioned in April 2019. Please see the home page for more details.
The incompatibility observed in an XSLT 3.0 test case in bug #27140 should be noted in Appendix J.1 of the XPath 3.0 specification. Specifically, if U is a union type with T as one of its members, and if E is an element with T as its type annotation, then in 2.0 the expression "E instance of element(*, U) returns false, while in 3.0 the same expression returns true.
Fixed in internal working draft.