2.1.7 [W3C-XSS] Section 3.14.6, Constraints on Simple Type Definition Schema Components

V0008:

The specification states:

 3 If the {variety} is union, then all of the following must be true:
 3.1 The {member type definitions} must all have {variety} of atomic or list…
  

MSXML6

A simple type with a {variety} value of union can include a simple type with a {variety} value of union.