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Following the resolution of Bug 16034, these tests need to be corrected.
Tests have been fixed
extvardef-016b does not require evaluation of the context item. Therefore the assignment of $y to the context item (which is the cause of XPTY0004) need not be evaluated. The value of fn:last() can be computed statically based on the static type of the context item. Therefore the test should also expect result 1.
OK. I think the intention of the test-case was to test last() returns 1 in the default case, with a valid context. Therefore I have corrected the xml assigned to the variable $y. Bug fixed and committed
Confirmed fixed. Thanks.