When using select by location/Have their centroid in option the geometry selection engine appears to use the literal centroid. With "U" shaped geometries the centroid will lie outside of polygon and will not be selected. We would prefer to do spatial selections using the forced inside centroid and not using something like intersect, or a negative buffer, etc... as the results are unreliable for our situations. To get around this I must make a centroid FC (using the inside option) run a spatial section against it then join back the results to the original layer to subset which take quite a bit more time than something a check box (or an alternate spatial selection method) could provide.