So, as much as I like using the CTRL key to cycle through overlapping objects, I found out that changing LEGACYCTRLPICK to 1 breaks CTRL-pick editing in 3D mode. I'll have to re-learn to use Shift+Spacebar for selection cycling from now on. Not as nice, but I'd rather advanced picking in 3D mode work.
I just wanted to put that information out there for those that might consider switching the behavior of LEGACYCTRLPICK.
Rick, I'm going to go ahead and mark your solution as the answer. Your suggestion of selection cycling is a very good workaround. While it would be nice for Autodesk to go ahead and fix this selection bug/issue, your workaround has solved it good enough for me.