Indeed, the feature got broken...
Now that's a catch 22. You have no choice but to use the daily snapshot, but the daily snapshot is broken... (snapshots are explicitly marked as having a high risk of getting broken)
anyway, will be fixed in tomorrows snapshot. (or svn right now)
Or if you do not want to wait, apply below patch:
Index: win32wsstdctrls.pp
===================================================================
--- win32wsstdctrls.pp (revision 25364)
+++ win32wsstdctrls.pp (revision 25365)
@@ -1249,6 +1249,8 @@
Flags := Flags or ES_AUTOHSCROLL;
if ACustomMemo.BorderStyle = bsSingle then
FlagsEx := FlagsEx or WS_EX_CLIENTEDGE;
+ if not ACustomMemo.HideSelection then
+ Flags := Flags or ES_NOHIDESEL;
pClassName := @EditClsName[0];
WindowTitle := StrCaption;
end;