This is not a glitch. The way Select Other works in SOLIDWORKS is that it will hide the face on which you executed the Select Other command, exposing all the geometry behind it. From here there are a number of things you can do:
1) You can select geometry from the list that was directly below the mouse when you executed select other. This is how most other systems work and is actually fairly limited. In your case, there is only one other face below where your mouse was when you started Select Other so only one item shows in the list. The reason it looks the way it does is because it is highlighting the portion of the face exposed by the hidden face in shaded mode and it highlights just the edges of the rest of the face because the rest of the face is obscured by the other, non-hidden shaded faces.
2) You can ignore the list and directly select items from the graphics area that have been exposed by hiding that first face under the mouse. It not only reduced mouse movement because you don't have to move to the list, but it is much more powerful than the list approach because not only can you graphically select the one face that is showing in the list, but you can select the two edges between the back faces that have been exposed by hiding the face. If you rotate the view around, you could select even more edges and faces that are visible because the face is hidden. It is also more useful than select other in most other systems because sometimes, where you originally started the select other command was not exactly over the obscured thing that you are trying to select so it won't show up in the list but WILL be exposed graphically by hiding the entire face.
3) When your mouse is in the graphics area (not on the list), you'll notice that the cursor has a little picture of a mouse with a selection arrow on the left mouse button and glasses on the right mouse button (the graphic is now an eyeball in SOLIDWORKS 2016 and later, rather than glasses). So this means you can directly select geometry with the left mouse button as noted above in #2, but if you move over any face in the graphics area and hit the right mouse button, it will hide that face too. You can hide as many faces as you like to expose more hidden geometry in a part file, or in the case of an assembly, you can drill down through many faces that are visually overlayed on top of one another and get deep into the model.
Here is a video tutorial I found on YouTube of someone explaining Select Other. You'll notice that most of the time, the user uses approach #2, directly selecting geometry from the graphics area. This individual only uses the list when there are multiple overlapping faces and the list helps determine which face is which due to the object naming
I hope this helps,
Jim, thank you so much for such a detailed answer. I could not have expected a better reply!