The third para in this sections starts as follows:

<quote>
When a constructor function for a namespace-sensitive type is used as a literal function item or in a partial function application (for example, fn:QName#1 or fn:QName(?)) the namespace bindings that...
</quote>

I think the subject of the paragraph is about constructor-functions-as-a-function-item. But the examples within brackets give the FO function fn:QName. I assume this was meant to be xs:QName#1 and xs:QName(?)?

Furthermore, they are hyperlinked to the fn:QName function. And if fn:QName was meant here (but rest of text suggests otherwise), this function takes two arguments.

I.e., I propose: s/fn:/xs:/