When Y Scale gizmos is dragged in Y-axis of a game object with "Move Rotate Or Scale" tool then it moves in Y-axis instead of scaling in Y-axis. However, X Scale gizmos and Z scale gizmos scale when respective scale gizmos is dragged. while dragging make sure that cube on top of the gizmos handle is not selected and then dragged., refer the attached video.

Steps to repro:
1. Create a New Project
2. Hierarchy > 3D object > Cube
3. Select "Move Rotate Or Scale selected object" Tool and make sure that toggle tool Handle rotation is set "Local"
4. Drag Y scale gizmos and Make Sure that cube on top of the gizmos handle is not selected and then dragged

Actual Result:
Y Scale Gizmoz is not working in Y-Axis direction with "Move Rotate Or Scale" tool in Scene view

Expected Result:
Y Scale Gizmoz handle work gracefully.

Occurring with:
2020.2.0a20.

Working with:
2020.2.0a19, 2020.1.0f1

Environment :
Windows 10 and Mac 10.15