unfiled → templates
undecided → low
new → closed
Thanks for taking the time to contribute to the jQuery project by writing a bug report and providing a test case!
This isn't a bug you just didn't read the documentation for
jQuery.template() closely enough, it says:
>templateT he HTML markup and/or text to be used as template. Can be a string, or an HTML element (or jQuery object wrapping an element) whose content is to be used as template
So this means if you pass in a jQuery object it should consists of a single element which is the container for the actual stuff you want to insert. In your test case the tr ends up being the container and thus doesn't get inserted it self.
Also check this test case for a few different approaches