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4.8.1 FLWOR expressions / Normalization / rule 3 (Normalization of a Where Clause) In the right-hand side, if ( [[Expr1]]_Expr ) ... should be if ( fn:boolean(( [[Expr1]]_Expr )) ) ... to compute the Effective Boolean Value of the where-expression, as specified in XQuery 3.8.2 Where Clause.
At their meeting today, the WGs accepted the proposed change, so I am marking this issue resolved-fixed. Since I was the original submitter, I will also close it.
This issue has been entered as FS erratum E028, and its fix has been committed to the source files for the next edition of the FS document.