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The query appears to expect a type error because the input to the function is not a QName. In fact, however, the input to the function is an empty sequence, because the path expression $input-context/Folder selects nothing (the top level element of the fsx source file is called Drivel). also affects NamespaceURIFromQNameFunc015 Note: with tests that use a schema, it's a shame that such errors aren't caught by type checking. They could be if the type of the $input-context variable were declared.
Type - path expressions should be $input-context//Folder. Fixed