HTML module: setting "quote-nbsp" to true does not work

[Sorin Marian Nasoi]

For details please see Feedback #3401277:
https://sourceforge.net/tracker/?func=detail&atid=1127431&aid=3401277&group_id=226244

As an example run the following query:
import module namespace html="http://www.zorba-xquery.com/modules/converters/html";
import schema namespace html-options="http://www.zorba-xquery.com/modules/converters/html-options";

html:parse('<title>Foo</title><p>Foo!&#160;Spaces',
<options xmlns="http://www.zorba-xquery.com/modules/converters/html-options" >
<tidyParam name="output-xml" value="yes" />
<tidyParam name="doctype" value="omit" />
<tidyParam name="quote-nbsp" value="yes" />
<tidyParam name="char-encoding" value="utf8" />
<tidyParam name="newline" value="LF" />
<tidyParam name="tidy-mark" value="no" />
</options>)

the error raised is:
build/URI_PATH/com/zorba-xquery/www/modules/converters/html.xq>:124,5: type error [err:XPTY0004]: Cannot treat empty sequence as [NodeXQType documentNode content=[XQType ANY_TYPE_KIND*]].
=================================================
html:parse#2 <http://www.zorba-xquery.com/modules/converters/html>
/home/spungi/work/zorba2/build/bin/tidy.xq at line 4 column 1