Hi GregVance,
Welcome to MSDN, here is the correct forum for you.
First, base on my experience, that rectangle is not exactly existed, when you click down the left button of the mouse on the form and drag, the rectangle show the area you are going to select controls on that form. All the controls on that form whose border is partly inside the area will be selected. You cannot set it remain visible in VS designer.
Second, the rectangle size shown in status bar of VS designer won't disappear immediately when you release mouse is because that information is not refreshed. When you click something else such as property grid, it will disappear.
Third, as for your purpose, you can use a GroupBox instead. GroupBox is widely used to group control which will give user good experience.
If you have anything unclear, please feel free to tell me.
Sincerely,
Kira Qian
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