These are your Windows colors that fool you.
I just tested it, and with HideSelectionset to false, I set the selected item and I see that this item is turning gray, which is my Windows color definition for the selected item in an inactive control.
If you want it to turn blue, which is most likely the color of the selected item in the active control, set the focus to ListView, saying listView1.Focus(), and you will see the color that you are talking about, but you just focused on it, so be careful.
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