I have spent the past few hours looking around for a solution to this problem, and I feel silly having to ask, but I am trying to extrude four faces of a model, and part of the process requires me to scale. However, its not scaling along the objects axis, its scaling along the worlds. I have tried to change the settings from world-object, among other ideas (like selecting the vertices manually and scaling them), but for some reason, the axis of the object must be set to the world or something, I don't really know. here are some screenshots of the issue.
Are you doing extrude first, then select the tool again and then scale it? Or are you doing both in the same operation? Sometimes it gets goofy, especially when multiple faces are involved. If you extrude the faces first then scale the verts does that work? I would also get rid of the middle edge and try it. Save first! If you double-click on the edge and it selects the loop, try deleting then try the operations. Still the same?