convert entities - what has changed?

I've been using SW16 for a few weeks now, and I'm running into functionality that isn't like I've become accustomed.

For several releases now, in using convert entities, it's been possible to convert an inside loop by first clicking the surrounding surface, then, holding the control key, clicking on an entity on the perimeter you want to convert, voila! you have that perimeter.

What I'm running into lately is that this method doesn't seem to be working anymore.

This is an example of what I'm running into:

Start out with this.

Step 2:

End result:

However, when I try to extrude:

It turns out that that edge I picked has converted, as well as the complete loop, so there's a duplication of geometry there.

So, delete the extra line and try the extrude again...

Nevertheless, this fails as well, because this is what remains when I exit the feature command

And so forth. The command isn't working like it used to.

So, what's happening, and why has it changed?

Thank you

SolidworksSketching