Find+Replace within selection doesn't work

Does this issue occur when all extensions are disabled?: Yes/No
Yes

- VS Code Version: 1.136.1
- OS Version: MacOS Tahoe 26.6.2

Steps to Reproduce:

1. Select a few lines of code that contain a certain character, such as hyphen (-)
2. Press Cmd+Option+F to open the Find+Replace box
3. Enter a hyphen (-) in the find box
4. Enter anything in the Replace box
5. Next to the Find box is the number of occurrences. I see the number of hyphens in my entire file instead of only in my selected lines
6. Clicking the "Replace" icon works, but if I clicked the "Replace All" icon, all the occurrences outside my selected lines would be affected, hence the bug