In the model builder, the "Select Layer by location" tool gives incorrect result if placed directly after "Make Feature Layer" tool containing a SQL expression.
Use the following sequence of tools to provide the input layer to the final "Select Layer by location" tool:1.Provide the input Feature Class to the "Make Feature Layer" tool which contains the SQL Expression. 2. Use "Copy Feature" tool to output the layer as Feature Class. 3. Again use "Make Feature Layer" tool on the Feature Class from the previous step to provide the resulting layer as an input to "Select Layer by location" tool.