Steps to Reproduce:
Side note: would also be nice if there was some way to indicate to "Change All Occurrences (Ctrl+F2)" a range in which to create the cursors.
We actually already support this - try out the 'Find in selection' button in the find widget

Ah thanks. I didn't even notice that button. Maybe it would make sense to make that selected by default when a text selection is made at the time the find widget is opened?
I believe that might have been the previous behavior but we have reverted that due to some reason - I can not remember why.
Is there a way to do this without using the mouse?
@tbfleming yes my pressing ctrl + f and the tab key and lot of times and then a space. I know this is not the best so please file a feature request to create a global workbench command to enable find in selection
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We actually already support this - try out the 'Find in selection' button in the find widget