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I ran into this on my HP Envy. To fix it, as root I opened /etc/systemd/logind.conf, found the line that said:

#HandleLidSwitchDocked=ignore

and replaced it with:

HandleLidSwitchDocked=suspend

Note the removed hash at the beginning of the line

I then ran: systemctl restart systemd-logind, and when I closed the lid, the system suspended properly