<xsl:template match="environment">

that matches elements called environment in no namespace but you have no
such elements, your original example looked like:

<test xmlns="blabla">
<comp id="New">
<process-type id="home" module-id="TESTER" status="enabled">
<environment>

so your document has an element environment in the namespace blabla
to match an element of that name put
xmlns:b="blabla" in your xsl stylesheet and use

<xsl:template match="b:environment">

(This is a FAQ)

David