I've finally got round to looking at this. I think TEST1 is trying to test 2k of RAM at F000:0000, which I believe is an area of nonvolatile RAM used to suspend the computer. What I'm not sure of is whether it's supposed to be mapped all the time or paged in/out on command.
I've attached a patch which may help, though on my build (with or without the patch) TEST1 fails during the ROM test and doesn't get as far as testing RAM. However I was able to test with a different utility, TESTCE1, which gave a failure on 'Backup RAM' without the patch and succeeded with it.