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It strange to see this test-case within internal variables group. Both internalvar-1 and internalvar-2 contain only external variables. I suggest to move these test-cases to external varibles group (internalvar-1 into group ExternalVariablesWith and internalvar-2 into ExternalVariablesWithout) and create appropriate <input-query> elements in XQTSCatalog.xml for them. Also I suppose it is better to move external var declarations in these tests out from (: insert-start :) (: insert-end :) comments block.
Another problem is that the name is "local:var" in the query, and that the catalog as well specifies "local:var". This makes an assumption on lexical equalness of QNames, which implementations doesn't consider relevant. I suggest renaming the variables to not have a prefix. Frans
Ivan: Thanks for the comment. Actually, the tests are intended to use local variables. Removed "external" keyword and also removed "local:" from name. Thanks, Carmelo
Thanks. I marked this bug as closed.