Getting XSLEvaluationFailed when Passing XML as param in XSLT Transform policy

[#1]

As per my requirement, I need to pass two xml payloads in xsl transform policy, to address this am passing one xmls as <Source> and other one as param as below

<?xml version="1.0" encoding="UTF-8" standalone="yes"?>
<XSL async="false" continueOnError="false" enabled="true" name="XSLTTransformMultipleXMLs">
	<DisplayName>XSLTTransformMultipleXMLs</DisplayName>
	<Properties/>
	<Source>xmlPayload_1</Source>
	<ResourceURL>xsl://XSLTTransformMultipleXMLs.xsl</ResourceURL>
	<Parameters ignoreUnresolvedVariables="true">
		<Parameter name="xmlPayload_2" ref="xmlPayload_2"/>
	</Parameters>
</XSL>

Edge is returning below error where as same works in xmlspy.. could you please suggest if I have missed something..

"Required item type of first operand of '\\\/' is node(); supplied value has item type xs:untypedAtomic\+ XSLT"

Please find attached xslt with multiple xmls. attachments.zip