Yes, sounds a bit odd and of course back in those days, for an initial the IRE would have been CAAFU as well so all the more surprising.
From a practical perspective, regardless of the conditions at the destination/diversion, the examiner wants to get back to the place his or her car is parked at the end of it therefore the weather at your departure point is likely to be the deciding factor and as parkfell suggests, probably best to consult your ATO Ops Manual.
Holding in winds >35kts across in most light aircraft and particularly in a DA42 is hard work - why make things difficult for yourself on test when examiners understand this and will accept a decision not to go?