I've been trying to understand xsl:template's xsl:param child element, and wrote following XSLT 3.0 stylesheet,

<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
xmlns:xs="http://www.w3.org/2001/XMLSchema"
exclude-result-prefixes="xs"
version="3.0">

<xsl:output method="xml" indent="yes"/>

<xsl:template match="/">
  <result>
	 <xsl:call-template name="test1">
	    <xsl:with-param name="p1" select="1"/>
	 </xsl:call-template>
  </result>
</xsl:template>

<xsl:template name="test1" as="xs:integer">
   <xsl:param name="p1" required="no" as="xs:integer"/>
   <xsl:sequence select="$p1 + 2"/>
</xsl:template>

</xsl:stylesheet>

Saxon-HE 12.5 produces no error with this stylesheet and emits following XSL stylesheet transformation result:

<?xml version="1.0" encoding="UTF-8"?> <result>3</result>

Is this not wrong?

<xsl:template name="test1" ... specifies <xsl:param name="p1" required="no", and therefore to my opinion
an error for the supplied template argument (using, <xsl:with-param name="p1" select="1"/>) must be emitted.

W3C's XSLT 3.0 test suite has a test case variable-0107 within decl\variable that uses the syntax <xsl:param name="p" required="no" ..., that made me create this issue on this XSLT 3.0 discussion forum.

Any clarification shall be helpful.