The attribute xml:space="preserve" is ignored in both
source documents and stylesheets. This means that
whitespace text nodes are stripped when they should not be.
This bug is present in Saxon 8.4 and 8.5 and appears to
have been present for quite a few previous releases.
The bug applies when input is processed from a
SAXSource or StreamSource, which includes the case
where the transformation is run from the command line.