The first time my label list moves the selection box in the scenegraph app it was flickering the screen.
Just a note - it appears to flicker only once per channel execution, and it's always the first time.
The labellist was grouped with everything else on the screen for easier reference in the script for the component.
I fixed it by moving the labellist out of the group, and displaying it on top all by itself with translation for where it would be on the screen. I'm sure it is still flickering, but it's not noticeable as it has a lot less to redraw this way for this instance.
The downside to this is it needs to be set visible/not visible, and focused separately another layer deep - but it works fine and that's the important thing.
I would suppose there are situations where you would want to redraw everything in the group, so I wouldn't necessarily consider this a bug, just my first instinct was if the list was changing it should know only to redraw the list unless told otherwise.