button – Apply with Notepad SelectionPlaceholder leaves all the glued structure selected

Consider the following button:

Button[Test, 
  NotebookApply[EvaluationNotebook[],
TemplateBox[{RowBox[{"[", ToBoxes@SelectionPlaceholder[Species],
"]"}]}, "chemical", editable -> true, selectable -> true],
Reserved area]]

The "chemical" style will be given below. There are three conditions to apply this button. Two of them work as I would like, but not the third.

  1. When the cursor is somewhere in an existing input cell, [Species] is inserted (where Species is a named placeholder), Species is left selected, and the necessary tags and styles are applied.
  2. When something is selected before pressing the button, pressing the button sticks the brackets (with the appropriate tags and styles) and the cursor is left after the last hook.
  3. (The problem). When the cursor is between cells, an input cell is created and [Species] is inserted (as with 1 above), but all is left selected, not just the placeholder.

enter the description of the image here

I am curious to know why the behavior is what it is in case 3, but more importantly, I am looking for a workaround for Case 3 in which only the placeholder was selected by the after.

The style definition is given by:

SetOptions[EvaluationNotebook[],
StyleDefinitions ->
book[{Cell[
      StyleData[
        StyleDefinitions -> 
        FrontEnd`FileName[{"Report"}, "StandardReport.nb", 
        CharacterEncoding -> "UTF-8"]]],
Cell[StyleData["chemical"]StyleMenuListing -> None,
TagBoxOptions -> {SyntaxForm -> "symbol"},
ShowStringCharacters -> False, ShowAutoStyles -> False,
ZeroWidthTimes -> True, FontWeight -> Plain,
FontFamily -> "Time",
TemplateBoxOptions -> {DisplayFunction -> (RowBox[{#}] &)
SyntaxForm -> "symbol"}]}]]