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When creating an XY event theme from a text file, for example, CSV files, the ability to select features is disabled and therefore cannot support selections.
The text file does not have a field ArcGIS can use as an ObjectID. The ObjectID identifies each feature with a unique value.
ArcGIS can select and edit features in an XY event theme only if the underlying data type supports an ObjectID field. Convert the text file to a format, such as DB 4, that supports an ObjectID field.