It will only work if i zoom in so the transform gizmo do not enclose both or if a disable the gizmo.
I think that it would be nice if we could only reduce the size of the gizmo with - or+ instead of disrupting the workflow by zooming closer or disabling the gizmo.
Maybe there is another option i am not yet aware so feel free to inform us.
In certain occasion i like them but in other i simply disable them, in max i was able to change the gizmo size but disabling the gizmo with a hotkey is similar.
I tried other 2.8 versions and i have the same issue but it is logical from the way the gizmo work since the white circle is a hot area where you can move the vertices around so it make selecting close vertices enclose by the circle impossible.
Did you ever find an answer to this? I’m able to select verts through the transform gizmo on one install of Blender, but on my other PC I cant. So I’ve changed an option somewhere that allows you to do it. I just dont know what that is. I do know it’s something in the key mapping options though.