Sorry for the slow reply, for some reason I am not getting your mailing list posts to my inbox.
Yes the MSD module does not allow updating atom groups as it does not allow "ragged" arrays of positions. Personally, I am a little doubtful of the theoretical soundness of so called "ragged" or local MSDs where the particles are not tracked over the full time duration and particles leave and enter the selection at will, however I understand it is done in the literature. I have thought about adding ragged MSD but was worried about its possible misuse, as it is much easier to get a rubbish MSD with updating selections. However if there is demand, perhaps I will reconsider. It is worth discussing at least :).
I think what you are seeing for your selection is that the distance for `cyzone` is calculated under the minimum image convention, which means that they are within the selection radius even if not in the primary box image.
Cheers
Hugo