not commenting on why you should not use XSLT1.1,
you have a typo in your for-each

<xsl:for-each select="."/>

should be
            <xsl:value-of select="."/>
or
           <xsl:copy-of select="."/>

<xsl:stylesheet version="1.1" xmlns:xsl="http://www.w3.org/1999/XSL/Transform" xmlns:exslt="http://exslt.org/common">

  <xsl:variable name="data">
    <root>
      <test>1000</test>
      <test>2000</test>
      <test>3000</test>
     </root>
   </xsl:variable>

   <xsl:template match="/">
     <xsl:for-each select="$data/root/test">
        <xsl:for-each select="."/>
     </xsl:for-each>
   </xsl:template>
</xsl:stylesheet>