Under 5.7, second bullet (the part after the numbered list) constains the following:

<quote>
The sequence may be returned as the result of the containing element. This happens when the element containing the sequence constructor is xsl:analyze-string, xsl:apply-imports, xsl:apply-templates, xsl:break, xsl:call-template, xsl:catch, xsl:choose, xsl:fallback, xsl:for-each, xsl:for-each-group, xsl:fork, xsl:if, xsl:iterate, xsl:matching-substring, xsl:next-match, xsl:non-matching-substring, xsl:on-completion, xsl:otherwise, xsl:perform-sort, xsl:sequence, xsl:try, or xsl:when. 
</quote>

This list contains items that cannot contain a sequence constructor. Also, xsl:template is not in the list, while it *can* contain a sequence constructor. What is more, it has the same semantics with the "as" attribute, but is not mentioned in the first bullet (which only talks about variables).

Items that, I think, do not belong in this list:
- xsl:apply-imports
- xsl:apply-templates
- xsl:call-template

Items that, I think, should be added are:
- xsl:template (perhaps in its own bullet)
- xsl:sort
- xsl:on-empty
- xsl:on-non-empty
- xsl:where-populated

(not sure this is complete)