Doc syntax and brief mention of restriction
INSERT [( column_name [, ...] )]
[ OVERRIDING { SYSTEM | USER } VALUE ]
-{ VALUES ( { expression | DEFAULT } [, ...] ) | DEFAULT VALUES }
+{ VALUES ( { expression | DEFAULT } ) | DEFAULT VALUES }
and merge_update is
INSERT actions cannot contain sub-selects.
+ Only one VALUES clause can be specified.
The VALUES clause can only refer to columns from
the source relation, since by definition there is no matching target row.