Caution:
So, it seems there is a potential resolution to this issue after all. Sometimes it takes multiple calls to the helpline, but patience is they key here.
A word of warning. Don't take this info as gospel, do run it past someone with more knowledge in this area, and be aware of the possible consequences.
I'll try to summarise.
The 3 year extension cannot be lifted from individual accounts.
You can make a request to cancel your existing 489 visa.
Option 2 is a possible way forward for anyone who is in the following categories:
Has an existing Bridging Visa A/B related to an 887 application which has already been lodged and the holder has since moved to a non regional area (if no conditions on the Bridging Visa A/B and that same Bridging Visa is live and in effect until the 887 decision).
As the extension has the effect of reinstating the original 489 and all previous conditions, the visa holder could consider a request to cancel the 489 via their Immi Account (can take up to 6 weeks to process). The Bridging Visa relating to the 887 should remain active, thereby returning the visa holder to the same position they were in before the extensions granted on 18/02/2022.
Has an existing Bridging Visa A/B (with no conditions) related to an 887 application, but not yet in effect until proposed end date as per their original grant letter, and as detailed within the Bridging Visa A Notification letter.
Even more caution should be applied here. The aim is not to jeopardise the prospects of the 887 being successfully granted. The 887 application has pre-requisites including work and residential requirements. The decision officer may also require that the 489 Visa Grant letter and conditions are also respected and complied with in full.
In this scenario, should you decide that the bridging visa is your preferred option, do not consider requesting cancellation of your 489 until after your initial obligations and conditions have been adhered to. That would normally mean staying within the designated areas for the entire duration of the original 489 before taking advantage of the lesser or zero restrictions as listed in your Bridging Visa A.
489 visa holders should not be moving to non designated areas unless authorised to do so.
This solution suits those who may have already anticipated making a move as soon as their original 489 expired but may have been caught up in trap of the 489 extension and it's unintended consequences.
However, please seek professional advice rather than consuming info from a non qualified person on an internet forum.
Hopefully this info helps or offers potential comfort for those who have been shaken up in the past week.
Further reminder - When in the Immi Account - do remember it's the 489 visa we are talking about, not the 887 application. Do not under any circumstances get confused. Given the current 887 processing times, you do not want to reset the clock here, nor terminate your Bridging Visa which is live due to the 887 application and suffer the consequences that such action would bring.