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The specification states "Annotations are (QName, value) pairs. If the EQName of the annotation is a lexical QName, the prefix of the QName is resolved using the statically known namespaces; if no prefix is present, the name is in the http://www.w3.org/2012/xquery namespace." and goes on to state " it is an error for users to create annotations in the following reserved namespaces [err:XQST0045]: .... http://www.w3.org/2012/xquery" Firstly, it's not clear what "creating" an annotation means. I suspect it means "specify". Secondly, %public and %private are annotations in this reserved namespace. Presumably the specification should state that annotations defined in the http://www.w3.org/2012/xquery namespace may be specified when they are defined in the XQuery/XPath family of specifications. The appendix entry for error code XQST0045 would have to be amended accordingly.
Sorry, this appears to be a duplicate of an earlier bug. However, its resolution has yet to appear in the latest draft. *** This bug has been marked as a duplicate of bug 15687 ***