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ยง6.7.6 has [ERR XTDE0555] It is a dynamic error if xsl:apply-templates, xsl:apply-imports or xsl:next-match is used to process a node using a mode whose declaration specifies on-no-match="fail" when there is no template rule in the stylesheet whose match pattern matches that node. Both occurrences of "node" here should be "item".
I agree
A proposed erratum E13 was published 13 Feb 2019, HTML version: https://htmlpreview.github.io/?https://github.com/w3c/qtspecs/blob/master/errata/xslt-30/html/xslt-30-errata.html#E13 I think the proposed text fixes this bug.