Extract Method not prompting for duplicates?

According to the documentation, it seems like I should be able to use Extract Method which will then prompt me to replace duplicates. 

I can't seem to make that dialog box appear. Am I misreading the documentation?

Example code:

################################################################################
def test_localwx_club_positive():
   username = 'TEST_localwxclub'
   password = 'localwxclub'
   pkgs = ['alphadailyobsextended5year', 'PKG_WSO']
   wsu.setup_unlimited_user_with_specific_packages(username, password, pkgs)
   
   return username, password

################################################################################
def test_pioneer_club_negative():
   username = 'TEST_localwxclub'
   password = 'localwxclub'
   pkgs = ['alphadailyobsextended5year', 'PKG_WSO']
   wsu.setup_unlimited_user_with_specific_packages(username, password, pkgs)
   
   return username, password

I highlight the section that I want to extract, CTRL+ALT+M.

Give my new function a name. Click ok, and get...