The Select By Location tool does not properly work around true curves with the 'intersect the source layer feature' spatial selection.

Workaround

Perform any of the following workarounds to resolve:

• Export the file from the file geodatabase to a shapefile, which simplifies the geometry of the feature class.
• Run the Simplify Polygon tool and set a tolerance that determines the degree of simplification, removing the true curve and creating a new feature class.
• Run the Densify tool to remove true curves in the feature class, set an offset parameter.
• Run the Select By Location tool in ArcMap 10.8 or earlier.

Steps to Reproduce