That explanation is factually incorrect, then. There currently is no "test" flag, nor is there the required infrastructure to check if your test alert went through:
https://www.sarsat.noaa.gov/emergency_beacon-testing/
So this "self-test" feature can't be communicating with actual satellites. No idea what it actually does, but it's definitely not an end-to-end test.
This policy document mentions that the "self-test" feature actually does not communicate with satellites at all, and also mentions a "test frame" that is discarded by satellites, as well as a "test protocol" that is forwarded by satellites, but discarded by the ground segment: https://www.sarsat.noaa.gov/wp-content/uploads/POL-MCC-051-v...
So it seems like both the "self-test" and the "test frame" don't tell you a lot about how well your beacon would work in case of an actual emergency (unless you have equipment that can receive and interpret that signal), and live testing involves a lot of paperwork.
And answers your question: "Each device has a test mode that will communicate with the SARSAT satellite network without sending an alert."