Error span causes refactoring suggestions

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TypeScript Version: nightly (2.6.0-dev.20170915)

Code

function f(): number {
    return {
        x: 1,
    }
}

The entire return statement has a red squiggly line under it.
Click anywhere in the error span and there will be a suggestion to refactor to an inner function.
Remove : number and there are no refactoring suggestions.
(Tested in vscode.)

Expected behavior:

Presence of a compile error doesn't cause a refactoring to be suggested.
Especially because it looks exactly like a code fix, but extracting to an inner function won't fix the compile error.

Actual behavior:

It does.
In fact, hovering over the light bulb shows "Show Fixes", but this is a refactoring, not a fix.

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Moved to microsoft/vscode#34481