Well now it is working. I deactivated the license on my Acer S5 Ultrabook laptop and installed and activated it on my powerful ASUS all in one PC (nvidia graphics, etc) and the windows selecting went flawless; I updated the Home Designer Suite 2015 software to see if that caused the bug but it still worked fine on the ASUS. I thought hmm maybe the laptop just is not powerful enough-- one thing on the ASUS was I easily saw the handles to resize windows, something I had NOT seen on my laptop.
I went back to the laptop, started a new project, boxed in 4 exterior walls like before and then added a couple of windows and now all is good. I can select windows in 2D and 3D, I see the resize handles. I can not figure what happened. Maybe I hit some hotkey on my keyboard that caused some issue preventing seeing the resize handles for windows but I am glad it works now! Puzzling.
Randall30's post in Problems selecting windows was marked as the answer