It looks as if your XSLT processor doesn't support the "simplified stylesheet" syntax (which a conformant processor is required to support....). Try putting the calls on system-property() into a stylesheet that uses the more usual full syntax.
Isn't JDeveloper an Oracle product? In that case I would think it's not unlikely it's using the Oracle XSLT processor (about which I know very little).
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Michael Kay
http://www.saxonica.com/
Author, XSLT 2.0 and XPath 2.0 Programmer\'s Reference
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