Dropdown inside repeat depending on value of dropdown outside repeat

form.xml

<xh:html xmlns:xh="http://www.w3.org/1999/xhtml"
         xmlns:xxf="http://orbeon.org/oxf/xml/xforms"
         xmlns:xxi="http://orbeon.org/oxf/xml/xinclude"
         xmlns:saxon="http://saxon.sf.net/"
         xmlns:fr="http://orbeon.org/oxf/xml/form-runner"
         xmlns:xf="http://www.w3.org/2002/xforms"
         xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
         xmlns:sql="http://orbeon.org/oxf/xml/sql"
         xmlns:ev="http://www.w3.org/2001/xml-events"
         xmlns:xi="http://www.w3.org/2001/XInclude"
         xmlns:exf="http://www.exforms.org/exf/1-0"
         xmlns:xs="http://www.w3.org/2001/XMLSchema"
         xmlns:fb="http://orbeon.org/oxf/xml/form-builder"
         xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/">
    <xh:head>
        <xh:title>Untitled Form</xh:title>
        <xf:model id="fr-form-model" xxf:expose-xpath-types="true">

            <!-- Main instance -->
            <xf:instance id="fr-form-instance" xxf:exclude-result-prefixes="#all" xxf:index="id">
                <form>
                    <section-5>
                        <states itemset-empty="false">AK</states>
                    </section-5>
                    <section-1>
                        <grid-2>
                            <grid-2-iteration>
                                <cities/>
                            </grid-2-iteration>
                        </grid-2>
                    </section-1>
                </form>
            </xf:instance>

            <!-- Bindings -->
            <xf:bind id="fr-form-binds" ref="instance('fr-form-instance')">
                <xf:bind id="section-5-bind" ref="section-5" name="section-5">
                    <xf:bind id="states-bind" ref="states" name="states"/>
                </xf:bind>
                <xf:bind id="section-1-bind" name="section-1" ref="section-1">
                    <xf:bind id="grid-2-bind" ref="grid-2" name="grid-2">
                        <xf:bind id="grid-2-iteration-bind" ref="grid-2-iteration" name="grid-2-iteration">
                            <xf:bind id="cities-bind" ref="cities" name="cities"/>
                        </xf:bind>
                    </xf:bind>
                </xf:bind>
            </xf:bind>

            <!-- Metadata -->
            <xf:instance xxf:readonly="true" id="fr-form-metadata" xxf:exclude-result-prefixes="#all">
                <metadata>
                    <application-name>a</application-name>
                    <form-name>a</form-name>
                    <title xml:lang="en">Untitled Form</title>
                    <description xml:lang="en"/>
                </metadata>
            </xf:instance>

            <!-- Attachments -->
            <xf:instance id="fr-form-attachments" xxf:exclude-result-prefixes="#all">
                <attachments>
                    <css mediatype="text/css" filename="" size=""/>
                    <pdf mediatype="application/pdf" filename="" size=""/>
                </attachments>
            </xf:instance>

            <!-- All form resources -->
            <xf:instance xxf:readonly="true" id="fr-form-resources" xxf:exclude-result-prefixes="#all">
                <resources>
                    <resource xml:lang="en">
                        <states>
                            <label>States</label>
                            <hint/>
                        </states>
                        <cities>
                            <label>Cities</label>
                            <hint/>
                            <item>
                                <label>First choice</label>
                                <value>1</value>
                            </item>
                            <item>
                                <label>Second choice</label>
                                <value>2</value>
                            </item>
                            <item>
                                <label>Third choice</label>
                                <value>3</value>
                            </item>
                        </cities>
                        <section-1>
                            <label>Cities</label>
                        </section-1>
                        <section-5>
                            <label>States</label>
                            <help/>
                        </section-5>
                    </resource>
                </resources>
            </xf:instance>
            
            <xf:instance xxf:readonly="true" xxf:exclude-result-prefixes="#all" id="grid-2-template">
                <grid-2-iteration>
                    <cities/>
                </grid-2-iteration>
            </xf:instance>
            
            
            <xf:instance id="cities-instance" class="fr-service" xxf:exclude-result-prefixes="#all">
                <body xmlns:fbf="java:org.orbeon.oxf.fb.FormBuilder"
                      xmlns:secure="java:org.orbeon.oxf.util.SecureUtils"
                      xmlns:p="http://www.orbeon.com/oxf/pipeline"
                      xmlns:frf="java:org.orbeon.oxf.fr.FormRunner">&lt;params&gt;
    &lt;state-abbreviation/&gt;
&lt;/params&gt;</body>
            </xf:instance>
            <xf:submission id="cities-submission" class="fr-service"
                           ref="instance('fr-service-request-instance')"
                           resource="/xforms-sandbox/service/zip-cities"
                           method="get"
                           serialization="application/x-www-form-urlencoded"
                           mediatype="application/x-www-form-urlencoded"
                           replace="instance"
                           instance="fr-service-response-instance"/>
            <xf:action id="cities-binding">
                <!-- React to event... on control... -->
                <xf:action event="xforms-value-changed xforms-enabled" ev:observer="states-control"
                           if="true()">
                    <!-- Service to call -->
                    <xf:send submission="cities-submission"/>
                </xf:action>
                <!-- Request actions -->
                <xf:action event="xforms-submit" ev:observer="cities-submission">
                    <!-- Get reference to initial request -->
                    <xf:var name="request-instance-name" value="'cities-instance'" as="xs:string"/>
                    <!-- Copy over to read-write request instance -->
                    <xf:insert ref="instance('fr-service-request-instance')"
                               origin="saxon:parse(instance($request-instance-name))"/>
                    <!-- Set values if needed -->
                    <xf:action context="instance('fr-service-request-instance')">
                        <xf:action class="fr-set-service-value-action">
                            <xf:var name="control-name" value="'states'"/>
                            <xf:var name="path" value="/*/state-abbreviation"/>
                        </xf:action>
                        <!-- Setvalue actions will be here -->
                    </xf:action>
                </xf:action>
                <!-- Response actions -->
                <xf:action event="xforms-submit-done" ev:observer="cities-submission"
                           context="instance('fr-service-response-instance')">
                    <xf:action class="fr-itemset-action">
                        <xf:var name="control-name" value="'cities'"/>
                        <xf:var name="response-items" value="/cities/city"/>
                        <xf:var name="item-label" value="@name"/>
                        <xf:var name="item-value" value="@name"/>
                    </xf:action>
                    <!-- Response actions will be here -->
                </xf:action>
            </xf:action>
        </xf:model>
    </xh:head>
    <xh:body>
        <fr:view>
            <fr:body xmlns:xbl="http://www.w3.org/ns/xbl" xmlns:p="http://www.orbeon.com/oxf/pipeline"
                     xmlns:oxf="http://www.orbeon.com/oxf/processors">
                <fr:section id="section-5-control" bind="section-5-bind">
                    <xf:label ref="$form-resources/section-5/label"/>
                    <fr:grid>
                        <xh:tr>
                            <xh:td>
                                <fr:databound-select1 xmlns="http://orbeon.org/oxf/xml/form-builder"
                                                      xmlns:xxbl="http://orbeon.org/oxf/xml/xbl"
                                                      id="states-control"
                                                      resource="/xforms-sandbox/service/zip-states"
                                                      bind="states-bind">
                                    <xf:label ref="$form-resources/states/label"/>
                                    <xf:hint ref="$form-resources/states/hint"/>
                                    <xf:alert ref="$fr-resources/detail/labels/alert"/>
                        
                        
                                    <xf:itemset ref="/states/state">
                                        <xf:label ref="@name"/>
                                        <xf:value ref="@abbreviation"/>
                                    </xf:itemset>
                                </fr:databound-select1>
                            </xh:td>
                        </xh:tr>
                    </fr:grid>
                </fr:section>
                <fr:section id="section-1-control" bind="section-1-bind">
                    <xf:label ref="$form-resources/section-1/label"/>
                    <fr:grid id="grid-2-grid" bind="grid-2-bind" repeat="content" min="1"
                             template="instance('grid-2-template')"
                             apply-defaults="true"
                             fb:initial-iterations="first">
                        <xh:tr>
                            <xh:td>
                                <xf:select1 id="cities-control" bind="cities-bind" appearance="dropdown">
                                    <xf:label ref="$form-resources/cities/label"/>
                                    <xf:hint ref="$form-resources/cities/hint"/>
                                    <xf:alert ref="$fr-resources/detail/labels/alert"/>
                                    
                                    <xf:itemset ref="$form-resources/cities/item">
                                        <xf:label ref="label"/>
                                        <xf:value ref="value"/>
                                    </xf:itemset>
                                </xf:select1>
                            </xh:td>
                        </xh:tr>
                    </fr:grid>
                </fr:section>
            </fr:body>
        </fr:view>
    </xh:body>
</xh:html>