Proposed resolution:

In [facet.num.get.virtuals], in the first line of paragraph 14, change "&&" to "&".

Then, replace paragraphs 15 and 16 as follows:

Otherwise target sequences are determined "as if" by calling the members falsename() and truename() of the facet obtained by use_facet<numpunct<charT> >(str.getloc()). Successive characters in the range [in,end) (see [lib.sequence.reqmts]) are obtained and matched against corresponding positions in the target sequences only as necessary to identify a unique match. The input iterator in is compared to end only when necessary to obtain a character. If and only if a target sequence is uniquely matched, val is set to the corresponding value.

The in iterator is always left pointing one position beyond the last character successfully matched. If val is set, then err is set to str.goodbit; or to str.eofbit if, when seeking another character to match, it is found that (in==end). If val is not set, then err is set to str.failbit; or to (str.failbit|str.eofbit)if the reason for the failure was that (in==end). [Example: for targets true:"a" and false:"abb", the input sequence "a" yields val==true and err==str.eofbit; the input sequence "abc" yields err=str.failbit, with in ending at the 'c' element. For targets true:"1" and false:"0", the input sequence "1" yields val==true and err=str.goodbit. For empty targets (""), any input sequence yields err==str.failbit. --end example]

This section describes the process of parsing a text boolean value from the input stream. It does not say it recognizes either of the sequences "true" or "false" and returns the corresponding bool value; instead, it says it recognizes only one of those sequences, and chooses which according to the received value of a reference argument intended for returning the result, and reports an error if the other sequence is found. (!) Furthermore, it claims to get the names from the ctype<> facet rather than the numpunct<> facet, and it examines the "boolalpha" flag wrongly; it doesn't define the value "loc"; and finally, it computes wrongly whether to use numeric or "alpha" parsing.

I believe the correct algorithm is "as if":

  // in, err, val, and str are arguments.
  err = 0;
  const numpunct<charT>& np = use_facet<numpunct<charT> >(str.getloc());
  const string_type t = np.truename(), f = np.falsename();
  bool tm = true, fm = true;
  size_t pos = 0;
  while (tm && pos < t.size() || fm && pos < f.size()) {
    if (in == end) { err = str.eofbit; }
    bool matched = false;
    if (tm && pos < t.size()) {
      if (!err && t[pos] == *in) matched = true;
      else tm = false;
    }
    if (fm && pos < f.size()) {
      if (!err && f[pos] == *in) matched = true;
      else fm = false;
    }
    if (matched) { ++in; ++pos; }
    if (pos > t.size()) tm = false;
    if (pos > f.size()) fm = false;
  }
  if (tm == fm || pos == 0) { err |= str.failbit; }
  else                      { val = tm; }
  return in;

Notice this works reasonably when the candidate strings are both empty, or equal, or when one is a substring of the other. The proposed text below captures the logic of the code above.