<xsl:apply-templates select="list[xyz[PPP]]" mode="test" />

that says apply teplates to all list elements that have an xyz child
that has a PPP child.

The list element in your input has that property so is selected and you
apply templates to it.

You don't have a template matching list so the default template applies,
which applies templates to the elements children

so templates are applied to the two xyz elements.

perhaps you want to add

<xsl:template match="list" mode="def">
something
</xsl:template>

Cheers,
Wendell

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Wendell Piez                            mailto:wapiez@xxxxxxxxxxxxxxxx
Mulberry Technologies, Inc.                http://www.mulberrytech.com
17 West Jefferson Street                    Direct Phone: 301/315-9635
Suite 207                                          Phone: 301/315-9631
Rockville, MD  20850                                 Fax: 301/315-8285
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  Mulberry Technologies: A Consultancy Specializing in SGML and XML
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