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Section 4 Phases of serialization says "Serialization comprises three phases of processing" and then lists five phases.
The XSL WG discussed this bug and accepted the text outlined by Scott Boag in Comment # 7 on 12 April. This bug and recommended change was presented to the XQuery WG for information at the joint meeting in North Carolina. The change was accepted. This bug will be closed. Note: the changes need to made in both Serialization and XSLT
I intended this comment for Bug 4372 and not 4557. My apologies.
This will be Serialization erratum E2.
It seems the convention is to mark editorial issues with "minor" severity.