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The expected result for this test appears to include a superflous namespace declaration. <assert-xml><![CDATA[<out xmlns:xs="http://www.w3.org/2001/XMLSchema" result="true"/>]]></assert-xml>
I agree. Note that a test driver is permitted to implement the assert-xml test by using deep-equal(), and that deep-equal() will ignore surplus namespace declarations.
As discussed at F2F XML Prague 2016: Test has been fixed as per the below comments.
Confirmed fixed. Thanks.