"Extract to function" refactor is not suggested if selection contains if statement (conditional return)

[OliverJAsh]

TypeScript Version: 3.9.2

Search Terms:

Code

const fn = ({ condition }: { condition: boolean }) => {
    if (condition) {
        return 1;
    } else {
        return 2;
    }
};

Select the whole if statement, including the else, like this:

Expected behavior:

The "extract to function" refactor should be suggested. When the refactor is used, it should produce code that looks like this:

const fn = ({ condition }: { condition: boolean }) => {
    return newFunction(condition);
};
function newFunction(condition: boolean) {
    if (condition) {
        return 1;
    } else {
        return 2;
    }
}

Actual behavior:

The "extract to function" refactor is not suggested (testing in VS Code).

Playground Link:

Related Issues: