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The essence of the test is: <!-- Heterogeneous sequence on rhs of "/" --> <xsl:variable name="f"><a b="3"/></xsl:variable> ... <xsl:value-of select="$f/(@b, upper-case#1)"/> Now $f is a document node, so @b selects nothing, so the RHS of "/" does not contain a node So the actual error is FOTY0013, failure to atomize a function item. The intent of the test can be achieved by declaring $f with as="element()".
Fixed as suggested.
Was resolved > 30 days ago, closing.