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

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:

Reproduce the supplied TypeScript snippet in VS Code with TypeScript 3.9.2, selecting the full if statement including else. Investigate the extract-to-function refactor behavior and verify that the suggestion appears and produces the expected function extraction shown in the issue.