As discussed in D76983, that patch can turn a chain of insert/extract with scalar trunc ops into bitcast+extract and existing instcombine vector transforms end up creating a shuffle out of that (see the PhaseOrdering test for an example). Currently, that process requires at least this sequence: -instcombine -early-cse -instcombine.
Before D76983, the sequence of insert/extract would reach the SLP vectorizer and become a vector trunc there.
Based on a small sampling of public targets/types, converting the shuffle to a trunc is better for codegen in most cases (and a regression of that form is the reason this was noticed). The trunc is clearly better for IR-level analysis as well.
This means that we can induce "spontaneous vectorization" without invoking any explicit vectorizer passes (at least a vector cast op may be created out of scalar casts), but that seems to be the right choice given that we started with a chain of insert/extract, and the backend would expand back to that chain if a target does not support the op.
i * TruncRatio could in theory overflow for ridiculous types. Maybe consider using int64_t for LSBIndex?