If you select "Expand nodes on selection", the selected node is expanded and a new selection is made visible by expanding the parent nodes. If you deselect this option, the selected node is no longer expanded on selection (good), but a new selection is also no longer made visible (bad). This results in a component that has a selection, but the user cannot recognize what is selected.
At least in the case of a component with multi-selection, it may be possible to collapse selected nodes without changing the selection (if "Adjust selection when collapsing" is switched off). However, if the selection changes (from outside) and a new node is added to the selection, then this should also be made visible (at least if an option "Make new selection visible", which has yet to be invented, is activated). You may also want to explicitly deselect this behavior if you have bulk selection operations that select many nodes, e.g. in a tree, in one go. You may not want to have the expansion if the selection came directly from a deep selection checkbox of the parent.
Perhaps a UI action (Show object in component) could also be useful, which makes a given object visible in a component (expanding in a tree up to this object) and setting the scroll position to scroll the object into the viewport in the tree and table.