To make the instanced component appear in the tree, you can do this instead of manually re-selecting the actor:
SelectedActor->AddInstanceComponent(NewComponent);
// Broadcast edit notifications so that level editor details are refreshed (e.g. components tree)
FLevelEditorModule& LevelEditor = FModuleManager::LoadModuleChecked<FLevelEditorModule>(TEXT("LevelEditor"));
LevelEditor.BroadcastComponentsEdited();