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The function conversion rules say: For built-in functions where the expected type is specified as numeric, arguments of type xs:untypedAtomic are cast to xs:double. I believe this rule is now unnecessary. There is no need to treat built-in function using xs:numeric differently from user-defined functions. xs:numeric is a standard union type and the conversion from xs:untypedAtomic falls out of the general rules for functions having a union type as the declared type of an argument.
I'm not certain, but I suspect that we could simply delete that sentence, and the behavior would be unchanged. Or did I miss something?
Will be fixed editorially.