To "reduce friction" in creating subVIs from portions of code, I suggest adding "Create subVI from Selection" to the block diagram contextual menu- rather than only having it in the titlebar menu.
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There's already a gesture to create a subVI in LabVIEW 2023 Q3 and later. Select a region of the diagram and (before releasing the mouse button), use the keyboard shortcut Ctrl+Space to open the Quick Change Palette. Many of the options are for placing things (like structures) around the selected diagram code, but there's also an option to create a subVI from the selection.