It seems like you just want to exclude info items, so just add another
filter, something like

<xsl:for-each select="record[not(contains(translate(Field1,$lowercase,$uppercase),'INFO'))]
                            [contains(translate(Field1,$lowercase,$uppercase),'ALL')
                              or
                              *[name() = $searchfield][contains(translate(.,$lowercase,$uppercase),$UCASETEXT)]]
                              

David

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