Is there a way to get the Condition Editor to recognize elements that are Selected?
We do not have a criteria in display rules to recognize "Selected" elements.Display Rules can change element visualization on draw, not modify or select elements
For this you can use Explorer search:
http://communities.bentley.com/products/microstation/w/microstation__wiki/23718.how-to-select-elements-using-a-range-of-values-greater-than-and-less-than-in-order-to-delete-them
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