Okay, thanks for sharing this. My copy of SQL/PGQ seems incomplete, it only includes subclauses 7.1 and 7.2 ;(
To clarify: the lateral join rule is in Section 7.1 of ISO/IEC 9075-16, which you already have. The first line of Section 7.1 says it modifies Subclause 7.6 ("<table reference>") of ISO/IEC 9075-2, and its Syntax Rule 1 augments SR 5 of that subclause by adding <graph table derived table> to the list of <table