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Unless someone wants to argue that those in the visible church are not condemned by the covenant of works, but by the curse of the covenant of grace.
I would argue that we are no longer under the Covenant of Works because in Christ we have fulfilled its requirement and obtained, by faith, it's reward (c.f. 2 Cor 5:7; Rev. 2:7). You could say that the curse for breaking Covenant of Works has killed us already, in Christ own death.
However, I don’t think I would want to say that the “grace of the Covenant of Grace is extended to their offspring” (but maybe others would be okay saying that?). This would seem to connote that the infant being baptized would have indeed received the benefit of being in Union with Christ.
Instead, I would want to say that the visible administration of the Covenant of Grace, which are those who are in the covenant community, still includes offspring. So maybe, the Covenant of the Covenant of Grace is extended to their offspring? But, I’m probably off on this, and would enjoy some clarification on this issue by some more studied board members.