Face of the Block Instance in per object Wireframe Display & selection

As in the video. Viewport is set to Shaded, Block Instance has custom Display Mode (Wireframe) but still, selection works like it would have been set to Shaded - it captures the selection making geometry behind difficult to select. Regular geometry with the same Display Mode configuration works as expected.
However, if I set the Wireframe Display Mode to the geometry inside the Block Definition and Block Instance it works ok, but this might be not desired as it affects all Block Instances.

System Info

Rhino 8 SR7 2024-3-28 (Rhino 8, 8.7.24088.06001, Git hash:master @ f39d2478d0e77eb325f46d0c6d8cfc8754fe44b2)
License type: Commercial, build 2024-03-28
License details: Cloud Zoo

Windows 11 (10.0.22631 SR0.0) or greater (Physical RAM: 64GB)
.NET 7.0.11

Computer platform: LAPTOP - Plugged in [96% battery remaining]

Non-hybrid graphics configuration.
Primary display and OpenGL: NVIDIA RTX A3000 12GB Laptop GPU (NVidia) Memory: 11GB, Driver date: 2-15-2024 (M-D-Y). OpenGL Ver: 4.6.0 NVIDIA 551.61
> Integrated accelerated graphics device with 4 adapter port(s)
- Windows Main Display is laptop’s integrated screen or built-in port
Primary OpenGL: NVIDIA RTX A3000 12GB Laptop GPU (NVidia) Memory: 11GB, Driver date: 2-15-2024 (M-D-Y). OpenGL Ver: 4.6.0 NVIDIA 551.61
> Integrated accelerated graphics device with 4 adapter port(s)
- Windows Main Display is laptop’s integrated screen or built-in port

Secondary graphics devices.
Intel(R) UHD Graphics (Intel) Memory: 1GB, Driver date: 6-15-2023 (M-D-Y).
> Integrated graphics device with 4 adapter port(s)
- Secondary monitor is laptop’s integrated screen or built-in port

OpenGL Settings
Safe mode: Off
Use accelerated hardware modes: On
Redraw scene when viewports are exposed: On
Graphics level being used: OpenGL 4.6 (primary GPU’s maximum)

Anti-alias mode: 8x
Mip Map Filtering: Linear
Anisotropic Filtering Mode: High

Vendor Name: NVIDIA Corporation
Render version: 4.6
Shading Language: 4.60 NVIDIA
Driver Date: 2-15-2024
Driver Version: 31.0.15.5161
Maximum Texture size: 32768 x 32768
Z-Buffer depth: 24 bits
Maximum Viewport size: 32768 x 32768
Total Video Memory: 11520 MB

Rhino plugins that do not ship with Rhino
C:\Users\Czaja\AppData\Roaming\McNeel\Rhinoceros\8.0\Plug-ins\Bella (813de3fb-18eb-405f-bfcd-b0b4d3da91fb)\24.2.0.0\bella_rhino.rhp “Bella” 24.2.0.0
C:\Users\Czaja\Desktop\Rhino_7_Win_2023.0417\HDRLightStudioTexture.rhp “HDRLightStudioTexture”
C:\Program Files\Common Files\McNeel\Rhinoceros\8.0\Plug-ins\Crayon (39629248-4fa6-47b8-83c7-745a7efea259)\1.2.0.0\Crayon\Crayon.rhp “Crayon” 1.0.0.0
C:\Users\Czaja\AppData\Roaming\McNeel\Rhinoceros\BlockEditNew\BlockEditNew.rhp “BlockEdit” 1.0.0.0
C:\ProgramData\McNeel\Rhinoceros\7.0\Plug-ins\Datasmith Rhino Exporter (d1fdc795-b334-4933-b680-088119cdc6bb)\DatasmithRhino7.rhp “Datasmith Exporter” 5.4.0.0

Rhino plugins that ship with Rhino
C:\Program Files\Rhino 8\Plug-ins\Commands.rhp “Commands” 8.7.24088.6001
C:\Program Files\Rhino 8\Plug-ins\WebBrowser.rhp “WebBrowser”
C:\Program Files\Rhino 8\Plug-ins\rdk.rhp “Renderer Development Kit”
C:\Program Files\Rhino 8\Plug-ins\RhinoScript.rhp “RhinoScript”
C:\Program Files\Rhino 8\Plug-ins\IdleProcessor.rhp “IdleProcessor”
C:\Program Files\Rhino 8\Plug-ins\RhinoRenderCycles.rhp “Rhino Render” 8.7.24088.6001
C:\Program Files\Rhino 8\Plug-ins\rdk_etoui.rhp “RDK_EtoUI” 8.7.24088.6001
C:\Program Files\Rhino 8\Plug-ins\NamedSnapshots.rhp “Snapshots”
C:\Program Files\Rhino 8\Plug-ins\MeshCommands.rhp “MeshCommands” 8.7.24088.6001
C:\Program Files\Rhino 8\Plug-ins\RhinoCycles.rhp “RhinoCycles” 8.7.24088.6001
C:\Program Files\Rhino 8\Plug-ins\Toolbars\Toolbars.rhp “Toolbars” 8.7.24088.6001
C:\Program Files\Rhino 8\Plug-ins\Displacement.rhp “Displacement”
C:\Program Files\Rhino 8\Plug-ins\SectionTools.rhp “SectionTools”

block selection problem.3dm (126.3 KB)

I was able to repeat this somewhat, here is the youtrack RH-81437