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V0262:
The specification states the following:
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Subclause 6.41, "<multiset value constructor>": <multiset value constructor> ::= <multiset value constructor by enumeration> | <multiset value constructor by query> | <table value constructor by query> ... <table value constructor by query> ::= TABLE <table subquery> ... Conformance Rules Without Feature T326, "Table functions", a <multiset value constructor> shall not contain a <table value constructor by query>. Subclause 7.6, "<table reference>": <table function derived table> ::= TABLE <left paren> <collection value expression> <right paren> ... Conformance Rules Without Feature T326, "Table functions", conforming SQL language shall not contain a <table function derived table>. Subclause 11.60, "<SQL-invoked routine>": <returns table type> ::= TABLE <table function column list> ... Conformance Rules Without Feature T326, "Table functions", conforming SQL language shall not contain a <returns table type>.
Microsoft SQL Server 2008 R2 and Microsoft SQL Server 2012 vary as follows:
Transact-SQL does not support this feature.