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I believe the new test package-021 should raise an error. The situation exactly matches this Note in ยง3.5.2 It is not intrinsically an error to have two xsl:use-package declarations that identify the same package (or different versions of the same package). This has the same effect as having two declarations that identify packages with different names but identical content. In most cases it will result in an error ([see ERR XTSE3050]) due to the presence of multiple components with the same name; but no error would occur, for example, if the used package is empty, or if the two xsl:use-package declarations use xsl:accept to accept non-overlapping subsets of the components in the used package. The same problem arises in package-022. Although xsl:accept is used to avoid a conflict on *:function1, there is still a conflict on *function2 which causes a clash as a result of being present via more than one use-package declaration.
The tests have been fixed (at least I hope I got it correct this time) and an inverse test has been added to test the mentioned error scenario. The changes were committed to Mercurial.