We depend on comparing the workspace root with the Git repo's path to
know if we're sharing the working copy with it. For that to work
reliably, we need the paths to be canonicalized, so that's what this
patch tries to do.
Most tests need a repo but don't need a working copy. Let's have a
function for setting up a test repo. But first, let's free up the name
`init_repo()` by renaming it to `init_workspace()` (which is also more
accurate).
