Preheat the oven to 350°F. Grease a heavy-duty steel 9x5-inch loaf pan or line it with parchment paper.
Add the sugar and vanilla extract to a large bowl. Using clean hands, rub the vanilla extract into the sugar until it’s well incorporated. Add the milk, oil, eggs, and yogurt. Whisk until smooth.
Add 1 ¾ cups of the flour, baking powder, and salt, stirring gently until just combined, being careful not to overmix. It’s okay if there are a few lumps.
In a separate small bowl, toss the 1 cup of diced strawberries with 1 tablespoon of flour (to prevent sinking), leaving any excess flour in the small bowl.
Pour ⅓ of the batter into the prepared loaf pan, then gently layer in ½ of the strawberries, followed by ⅓ batter, then the remaining strawberries, then the remaining batter, smoothing the top.
Bake for 50-60 minutes, or until a toothpick inserted in the center comes out clean.
Let cool in the pan for 10 minutes, then transfer to a wire rack to cool for an additional 10 minutes.
While the loaf cools, in a small bowl, make the glaze by mashing the strawberries with a fork until a smooth paste forms. Add the powdered sugar and 1 teaspoon of the lemon juice, stirring to form a glaze. If the glaze is too thick, add more lemon juice, 1 teaspoon at a time until the desired consistency is reached.
Drizzle the glaze over the top of the loaf, allowing some to drip down the sides. Allow to cool completely before slicing.