The "Replace var with inferred type" folding option does not always replace the var keyword

I found there is the “toggle folding” action, which I can assign shortcut to and which allows me to again “replace” the var with inferred type on places, where I clicked on them.

But it does not work everywhere. Some cases like mentioned “builder like” expression, or even simple assignment like this var c = new ResourceAttributeDefinitionType(); does not “fold” to the inferred type even when I execute the “toggle folding” action. In those cases it instead folds whole method in which the code is present.

That is misunderstanding. I don't want to replace the var for explicit type in the source code. I just want to see it in the “presentation” layer. I want the source code to still have “var”.

Maybe the misunderstanding came from the word “replace”. I am using that word just because it is in the name of the option itself. Maybe I should just say “fold” even though that does not makes much sense to me either.

Here is a scratch example.

class Scratch {

    public static void main(String[] args) {
        var b = "";
        var a = test();
    }
    
    private static SomeClassWithIntentionallyLongName test() {
        return new SomeClassWithIntentionallyLongName();
    }
    
    private static class SomeClassWithIntentionallyLongName {
        
    }

}

Navigate to the line with var a = test(); and try to “fold” it with toggle folding action. At least in my case, it does fold whole main method. When you will navigate to the var b = “” and do the same there, it will “fold” the “var” to the actual inferred type (String).

By the way, It seems that the length of the name of the class is the culprit. When I shorten it to just “SomeClass”, then the “folding” works fine.

So maybe I should ask, is the class name length for which the "folding" can be applied hard-coded? Or can I configure it somehow?