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Upon searching for an element with a valid selector, the matching elementIDs are returned like earlier but on selecting the ID, the corresponding element is not highlighted anymore in the preview screen with the latest version of Appium Desktop.

I am also facing the same with version 1.1.2.0, it was all fine in last version
Thanks for reporting this! I'll have a look today.
I have a fix in for this. This will be next release.