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The first signature of fn:nilled (with no parameters) doesn't allow it to return the empty sequence, but it seems it should allow it. If $arg is omitted, and the context item is a node but not an element node, it should return the empty sequence according to the rules described. e.g. $mydoc/foo/@bar/nilled()
I agree.
Thanks, Priscilla. I have fixed this, and I decided to deem it editorial, as the specification of the function makes it pretty clear that a return type of "xs:boolean?" is necessary.
By the way, I checked that there are test cases where nilled() with no arguments returns an empty sequence, and there are several.