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I think test case json-to-xml-027 raises a question about the spec: if there's an invalid escape sequence like \uDEAD, and unescape=false, is the processor still expected to detect that it's invalid and call the fallback function, or should it just copy \uDEAD blindly to the XML result? I would think the latter.
The Working Group agrees that it should just copy \uDEAD blindly to the XML result. An error is raised if a fallback function is provided in this case.
The change has been applied to the spec, and the test case has been changed to expect an error.