I'm sure there is a good explanation, and I would be ecstatic if someone
could share it with me.
templates take nodes from one tree and construct nodes in another.
The result tree is a completely separate document and templates
do not apply to that. It is in fact an error to have two templates
with the same priority matching the same node. The processor may recover
from the error by taking the last but some will just stop.
You need to ensure that the template matching your node constructs all
the needed output, and that there is only one such template. You can
share code by using a named template.
David
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