Probably a bug in Saxon but just wanted to clarify-
<xsl:value-of select="unparsed-text('http://something/test.txt')"
disable-output-escaping="yes"/>
Result -
<div>test</div>
Now try-
<xsl:try>
<xsl:value-of select="unparsed-text('http://something/test.txt')"
disable-output-escaping="yes"/>
<xsl:catch></xsl:catch>
</xsl:try>
Result-
<div>test</div>
Any thoughts on why this is happening?