Notebook Apply with SelectionPlaceholder leaves entire pasted structure selected

Consider the following button:

Button[Test,
NotebookApply[EvaluationNotebook[],
TemplateBox[{RowBox[{"[", ToBoxes@SelectionPlaceholder[Species],
"]"}]}, "chemical", Editable -> True, Selectable -> True],
Placeholder]]


The style "chemical" will be given below. There are three conditions for applying this button. Two of them work how I would like, but the third does not.

1. When the cursor is somewhere within an existing input cell, [Species] is inserted (where Species is a named placeholder), and Species is left selected, and the needed tags and styles are applied.
2. When something is selected before pressing the button, pressing the button pastes square brackets (with the appropriate tags and styles) and the cursor is left after the last bracket.
3. (The problematic one). When the cursor is between cells, an input cell is created and [Species] is inserted (just as with 1 above), but the whole thing is left selected, not just the placeholder.

I am curious why the behavior is what it is in case 3, but more importantly am looking for a workaround for case 3 that only has the placeholder selected afterward.

The style definition is given by:

SetOptions[EvaluationNotebook[],
StyleDefinitions ->
Notebook[{Cell[
StyleData[
StyleDefinitions ->
FrontEndFileName[{"Report"}, "StandardReport.nb",
CharacterEncoding -> "UTF-8"]]],
TagBoxOptions -> {SyntaxForm -> "symbol"},
ShowStringCharacters -> False, ShowAutoStyles -> False,
ZeroWidthTimes -> True, FontWeight -> Plain,
FontFamily -> "Times",
TemplateBoxOptions -> {DisplayFunction -> (RowBox[{#}] &),
SyntaxForm -> "symbol"}]}]]


Use:

Button[
Test,
NotebookApply[
EvaluationNotebook[],
TemplateBox[{ToBoxes@SelectionPlaceholder[Species]},"chemical"],
Placeholder
]
]


TemplateBoxOptions->{DisplayFunction->(RowBox[{"[",#,"]"}]&),SyntaxForm->"symbol"}

That is, put the brackets inside of DisplayFunction` so that they can't be selected.