This test expects error XTDE0045. I don't think it should expect an error.

The error condition reads: If the invocation of the stylesheet specifies an initial mode that does not match the expanded QName in the name attribute of any non-private mode in the top-level package, then a dynamic error occurs if either (a) the effective value of declared-modes on the top-level package is yes, or (b) the initial mode is not the unnamed mode and does not match the expanded QName in the mode attribute of any template rule defined in the stylesheet.

In test mode-1702a, condition (a) is false because declared-modes="no", and condition (b) is false because the initial mode is the unnamed mode.