I'm pretty sure CREATE_SUSPENDED works. It's such a basic thing that would cause many race conditions if it did not, including in parts of Wine that use it and in the test you just linked.
If the new thread were not initially suspended, it would be possible for the thread to return between the initial CreateThread call and the following SuspendThread call. This would cause the first WaitForSingleObject to succeed and the test to fail.
I guess you could change the test to include a wait before the first SuspendThread call, but given that there probably aren't any broken implementations that this would specifically catch (and those implementations would already fail sometimes), I don't see the point.