I don't believe so, tested it many times. It was my understanding when I saw what the function was named that it would actually dig the block, as in give a drop like if you were digging it, however the block just gets replaced with air, also the documentation says "Replaces the specified block with air, without dropping the usual pickups for the block."
Or perhaps you meant that you think it should and currently doesn't, spawn the pickups, in which we can both agree there!
Or perhaps you meant that you think it should and currently doesn't, spawn the pickups, in which we can both agree there!