Actually, I think I just figured out why I see this behavior. It appears I forgot one crucial piece of information in the bug report; the larger disk is not empty, in fact it's almost full from a previous test, I forgot to erase that data. I also missed that the first option is the "resize" option, not "use entire disk" (for some reason I just assumed it would be "use entire disk"), but since the larger drive cannot be resized, it only shows the smaller drive.
So it seems this is not a bug after all, it's just me not reading carefully enough. Sorry for the inconvenience.
Actually, I think I just figured out why I see this behavior. It appears I forgot one crucial piece of information in the bug report; the larger disk is not empty, in fact it's almost full from a previous test, I forgot to erase that data. I also missed that the first option is the "resize" option, not "use entire disk" (for some reason I just assumed it would be "use entire disk"), but since the larger drive cannot be resized, it only shows the smaller drive.
So it seems this is not a bug after all, it's just me not reading carefully enough. Sorry for the inconvenience.