False positive IDE0059 for variable captured by lambda in switch block

Version Used: VS 17.0 RC 2

Sample code:

Func<DnsMessage, ValueTask<DnsMessage>> queryMethod;

Console.Write("Choose DNS method: [T]CP / [U]DP / HTTP [G]ET / HTTP [P]OST: ");
switch (Console.ReadLine()![0])
{
    case 'G' or 'g':
    {
        Console.WriteLine("Using HTTP GET.");

        Uri? serverUri;
        while (true)
        {
            Console.Write("Server url: ");
            if (Uri.TryCreate(Console.ReadLine(), UriKind.Absolute, out serverUri)
                && serverUri.Scheme is "http" or "https")
                break;
            Console.WriteLine("Can't parse server url.");
        }
        var client = new HttpsDnsClient(serverUri); // 1
        queryMethod = m => client.QueryAsync(m, HttpMethod.Get);
        break;
    }
    case 'P' or 'p':
    {
        Console.WriteLine("Using HTTP POST.");

        Uri? serverUri;
        while (true)
        {
            Console.Write("Server url: ");
            if (Uri.TryCreate(Console.ReadLine(), UriKind.Absolute, out serverUri)
                && serverUri.Scheme is "http" or "https")
                break;
            Console.WriteLine("Can't parse server url.");
        }
        var client = new HttpsDnsClient(serverUri); // 2
        queryMethod = m => client.QueryAsync(m, HttpMethod.Post);
        break;
    }
    case 'U' or 'u':
    {
        Console.WriteLine("Using UDP.");

        IPAddress? serverAddress;
        while (true)
        {
            Console.Write("DNS Server ip: ");
            if (IPAddress.TryParse(Console.ReadLine(), out serverAddress))
                break;
            Console.WriteLine("Can't parse ip.");
        }
        var client = new UdpDnsClient(serverAddress); // 3
        queryMethod = m => client.QueryAsync(m);
        break;
    }
    default:
    {
        Console.WriteLine("Using TCP.");

        IPAddress? serverAddress;
        while (true)
        {
            Console.Write("DNS Server ip: ");
            if (IPAddress.TryParse(Console.ReadLine(), out serverAddress))
                break;
            Console.WriteLine("Can't parse ip.");
        }
        var client = new TcpDnsClient(serverAddress); // 4
        queryMethod = m => client.QueryAsync(m);
        break;
    }
}

Expected Behavior: No IDE0059 reported.

Actual Behavior: All the client variables are reported to be unused.