The following works for me:
<xsl:variable name="core" select="document('CoreMain_v1.4.0.xsd')" />
<xsl:variable name="AcRec" select="document('AcademicRecord_v1.3.0.xsd')" />
<xsl:template match="xs:element">
<xsl:variable name="prefix" select="substring-before(@type, ':')" />
<xsl:variable name="name" select="substring-after(@type, ':')" />
<xsl:choose>
<xsl:when test="$prefix = 'AcRec'">
<xsl:apply-templates select="$AcRec//*[@name=$name]">
<xsl:with-param name="prefix" select="$prefix" />
</xsl:apply-templates>
</xsl:when>
<xsl:when test="$prefix = 'core'">
<xsl:apply-templates select="$core//*[@name=$name]">
<xsl:with-param name="prefix" select="$prefix" />
</xsl:apply-templates>
</xsl:when>
</xsl:choose>
</xsl:template>
But I use the same logic to handle the lookup of elements in the current or other documents based on the prefix, matching the node name in numerous places within the stylesheet. So, after changing the stylesheet version to 2.0, I tried:
<xsl:template match="xs:element">
<xsl:value-of select="my:lookup(@type)" />
</xsl:template>
<xsl:function name="my:lookup">
<xsl:param name="attribute" />
<!-- parse the attribute for the prefix & name values -->
<xsl:variable name="prefix" select="substring-before($attribute, ':')" />
<xsl:variable name="name" select="substring-after($attribute, ':')" />
<!-- Switch statement based on the prefix value -->
<xsl:choose>
<xsl:when test="$prefix = 'AcRec'">
<xsl:apply-templates select="$AcRec//*[@name=$name]">
<xsl:with-param name="prefix" select="$prefix" />
</xsl:apply-templates>
</xsl:when>
<xsl:when test="$prefix = 'core'">
<xsl:apply-templates select="$core//*[@name=$name]">
<xsl:with-param name="prefix" select="$prefix" />
</xsl:apply-templates>
</xsl:when>
</xsl:choose>
</xsl:function>
In my reading, I have only found examples of functions that return text - none call templates. I have the impression that an xsl:function should always return text/output...
After more investigation, it is entering the my:lookup function and the variables (prefix & name) are getting populated. So it does enter the xsl:choose statement, and the hits the appropriate when test. The issue appears to be with the apply-templates - value-of is displaying the child values; copy-of does as well, which I think is odd (shouldn't the output include the xml element declarations?). Why would there be a difference if code that works in a template declaration is moved to an xsl:function?