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See ACTION 2016-01-14-003: MKay to update the rules on arrow expression > streamability such that it is done in the same way as in XP, which > means that the lexical rewrite is applied and the streamability > rules apply *after* the lexical rewrite The spec currently says something very close to this in 19.8.8. However, it refers the reader to the rules for static function calls, and an arrow expression is not always a static call.
Note the dependency on the fix for bug #29346.
Agreed to fix the bug in the way suggested in the comments.
Note: 19.8.8.13 Streamability of Static Function Calls and 19.8.8.10 Streamability of Dynamic Function Calls both say "This section applies to (static|dynamic) function calls written using the traditional syntax F(X, Y, Z) and equally to those using the new XPath 3.1 syntax X => F(Y, Z)" but currently the table in 19.8.8 only points to 19.8.8.10 for Arrow expressions.
The changes have been applied.