I had made a Pull Request to address this issue https://github.com/jquery/jquery/pull/870
As mentioned in the pull request...
In order to get around the issue, I am checking if the destination node has a parentNode before assigning to the outerHTML property. With this change IE10/9/8/7/6 all pass the current unit tests along with latest FF and Chrome releases. The code inside the cloneFixAttributes function that I modified is really to fix IE in the first place, so other browsers aren't really affected too much.
I initially also added a check to verify that the nodeType was not 9 (Node.DOCUMENT_NODE), but the code block that I changed only pertains to the object nodeName and I can't think of a use case where it's parentNode would ever be a document, so I think it is safe to leave out this check and leave the fix as terse as possible to save some bytes ;)
I may have been overgenerous with comments in this fix, but since it was an odd browser change I thought it might be helpful as I see other browser work arounds have similar comments.