To rephrase the behaviour in a question about consistency: Why a selection of one line treated differently than a selection of many lines?
If there is selected text, the selected text (instead of the "word" at caret) is placed into "text to find".
And the "text to find" is an input that only takes a single line. So for a selection of more than one line, the selection can not be placed into "text to find".
Therefore the behaviour if "Find Text at Cursor" is enabled, is to take the selection, as long as it is no more than one line.
If the selection is placed into "text to find", then setting scope to "selection" is not desirable. (Well there may be cases, but many people are used to the current behaviour.
Changing it now, would affect those people.
I do not know, if people rely on this, if the option "Find Text at Cursor" is off. So I asked.
Btw: open office also follows the one line rule (ctrl-h for replace).
I understand that different editors handle this different.
I understand that there are people (including you) who are used to other behaviour.
And it would be nice to provide the unctionality
Anyway: at least if "Find Text at Cursor" is enabled, the behaviour can not be changed (not as default, not without option). This would upset those who like the current behaviour, and are used to the IDE being like this.
So the possibilities are:
1) Introduce an entirely new option for this. I like to avoid this
2) If no one minds: make it depended on "Find Text at Cursor" (disabled)
(As I said, I still wait on feedback, people may rely on that behaviour too)
What I try to understand is, if it is important the have "Find Text at Cursor" (that is get the selected text filled in), and yet limit the scope to the selected text.
IMHO this only makes sense, if you do not use the selected text as "text to find". Otherwise, it is just a one time replace of that text.