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This function defines an error condition: "If the imported module requires a value for the initial context item or for an external variable, and no value is supplied, an error is raised [err:FOQM0004]" It doesn't explain what it means for a module to require a value for the initial context item or for an external variable. Indeed, in XQ31, it's permissible not to supply a a value for an external variable, and it is handled as a dynamic error, since "A reference to a variable that was declared external, but was not bound to a value by the external environment, raises a dynamic error [err:XPDY0002]." and "If the context item is absentDM31, a context item expression raises a dynamic error [err:XPDY0002]." Furthermore, since "Only the main module can set the value of the initial context item. In a library module, a context item declaration must be external, and specifies only the static type. Specifying a VarValue or VarDefaultValue for a context item declaration in a library module is a static error [err:XQST0113]." and "In every module that does not contain a context item declaration, the effect is as if the declaration" then wouldn't every library module "require" a value to be supplied for the context item.
The WG accepted the proposal.
I have made the spec changes. Changes still need to be made to tests.