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The example for format-number should be changed from format-number(12345.6, '#,###.00') to format-number(12345.6, '#.###,00') The XQuery spec states that the default for the decimal-separator is (.) and the grouping-separator is (,). With those defaults, the current example raises an error.
I think Michael Kay has already changed it in the latest version of the F&O document. He sent an email about it: https://lists.w3.org/Archives/Member/w3c-xsl-query/2012Feb/0069.html
I see this has been changed between the 20111213 working draft and the 20130108 candidate recommendation from '#.###,00' to '#,###.00' (which is the exact opposite of what the bug says!), so maybe this could be closed now?
I hope we have finally got this simple example right!