When the tool is set to Selectable Layers, it only works for the layers that are not in a group. I have checked the List by Selection and List by Editing and the layers I want are all checked.
Am I missing a setting or is this a bug?
@EvanMyers1 - I've reproduced this behavior on my ArcGIS Pro 3.3 and think it may be a BUG. I would recommend you contact Esri Support Services to work with an analyst so they may log it as such.
I confirm this behavior on ArcGIS Pro 3.3.2.