The "Possible Issues" section of the documentation for MatrixFunction lists several possible ways in which a call to MatrixFunction can fail or not have a well-defined answer, and it gives clear error messages for each. But I just called MatrixFunction[Sqrt, {{0, 1}, {0, 0}}] and got the cryptic error message
StringForm::sfr: Item 1 requested in "Cannot compute the matrix function for the function 1." out of range; 0 items available"
MatrixFunction::nosol: Cannot compute the matrix function for the function 1.
This error mode is not discussed in the documentation for MatrixFunction. I understand why the function call should fail, since the matrix does not actually have a square root. But I don't understand this error message. Where is it getting "the function 1" from? 1 is not a function.
MatrixFunction[Power[#, 1/2] &, {{0, 1}, {0, 0}}]-- there seems to be a mathematical problem with the square-root function (that it does not have a power series expansion about the eigenvalue 0). $\endgroup$