I reviewed section 23. The last paragraph of 23.3 is inconsistent with the rest of the section.
Suggested revised wording:
The result of evaluating the expression must be a single atomic value of the type expected by the context, and it is a schema definition error otherwise. Some XPath expressions naturally return a sequence of values, and in this case it is also schema definition error if an expression returns a sequence containing more than one item. If the expression returns an empty sequence it will be treated as returning nil.