Broken: 2.93 master
Short description of error
(pun almost intended)
In the left image, alt-clicking the highlighted edge only selects that edge, whereas alt-clicking any other edge along that loop selects the whole loop (including that edge). However, if faces are extruded to make the mesh in the right image, then alt-clicking that edge selects the whole loop.
Note that even though the edge does border an n-gon, there's still a clearly defined direction for the loop as the edge leads to a 4-pole.