Thanks Michael, it fixed one problem but introduced another.

Transformation:
     <xsl:template match="play">
     <xsl:for-each-group select="*" group-adjacent="(@act, '?')[1]">
         <xsl:choose>
             <xsl:when test="@act">
                 <act>
                     <xsl:copy>
                         <xsl:apply-templates  select="@*|node()"/>
                     </xsl:copy>
                 </act>

Michael Kay
Saxonica