simplest is to remove 

exclude-result-prefixes="updg"

since you do want this prefix output.

and then move the 

xmlns:updg="urn:schemas-microsoft-com:xml-updategram"

in your stylesheet off the xsl:stylessheet element and on to the ROOT
literal result element.

then it will only be in scope in the places you want it to be in scope,
and it will appear in the output where you need it to appear.

David

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