...the current feature should be renamed to "select/unselect top-level children" since that's exactly what it does. I'm looking for a way to select all

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Actually it is more like:

  • Select all visible items: top level terms and expanded child terms will be selected. Collapsed child terms won't be selected, otherwise I think that could lead the huge problems when people delete/move etc. terms and are not aware of the selection.
  • Deselect all items (or Clear selection): All checkboxes, whether visible or not, are deselected