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tests trivial-2 and trivial-4 are designed to test the trivial embedding of XQuery in XML documents. But the source documents trivial-1.xq and trivial-3.xq are not XML documents. They are regular queries that generate XML documents containing trivially-embedded XQuery as their result. Perhaps the test driver is supposed to run the query named as <query name="xxx"> and then process the resulting XML document to extract another query and then run that? If so (a) it's hard to deduce this from the documentation, and (b) it seems a remarkably convoluted way of going about things. Why not include the XML document containing the trivially-embedded query directly in the test suite? You could even embed it directly in the catalog. (Come to think of it, things would be a whole lot easier if most of the queries were embedded in the catalog...)
You surmised correctly. This was documented in the new Trivial scenario, which says: trivial: A query this is expected to produce valid results. Principal input should always be specified, even if the query doesn't have any PathExpr. The initial query returns an <xqx:xquery> element (Trivial Embedding of XQuery). This embedded query is then executed to produce the final result. Had I been thinking more clearly, I would have added a pointer to this text in the release notes and made mention of this in our guidelines. I will do so now. We chose to do it this way in order to have the samllest impact on the catalog. Only 4 tests are using this scenario, after all. Please mark this bug report as CLOSED if you agree with this resolution.