Yeah thats actually even better, depends on the game and interaction needs though sometimes.
So I played with this a bit more
Again calls an actor to do stuff for now, passes mouse position at the moment but can be doing its own detection in the future maybe.
Actor spawns, Initilizes a mesh, binds to events of overlaps and creates some feedbacks on units selected for now, which communication and management can be on other system later on.
And starts translating vertices, a bit went further here, no additional component just dynamic mesh and we batch transform all the cube vertex. This gives ofcourse greater control over box size, Z height without any additional component needed. Maybe a bit over engineer but it feels nice and performing since its 8 vertices updated with additional collision reformation.
While the Dynamic mesh changing we already get the overlaps, record them, I additionally put for now an overlay on them an remove if they get out of the collision just during selection. Which again can be manager that handles the selections states of units in another class rather than squeezing into actors lifetime.

During selection made a grid divide current area and line trace surface and save hits.
This is good for couple of things imo.
1st I don’t have to use decals, I kinda find them clunky for this type of interaction.
2nd option is using HLSL or PostProcess to indicate intersection with stencils. Stencils not exactly can work with this, HLSL we can kinda do the bordering and maybe a cap to it however in a dynamic scenario (landscape, props) its limited.

So I go with the other option which I think it will be better long term especially for AAA game scenario. Since I have the points we can do couple of things.
1- We can create a proxy mesh on top. I was able to achieve this actually after lots of vertice math and triangle creation however on tick its heavy.
2- We can create a new custom shader with actual points and draw a proxy which would be the best. However its kinda over engineering already overengineered proto but its there, can be done that way.
3- So I preffered instanced static meshes at those points, which is not render heavy, looks nice and opens room for artistic expression aswell. We can even prefer to create spline meshes with points as grid.

Also scripts and demo video available here.
@davi1521 Thanks for the question by the way, provided multiple answers but this one is actually something that is more overkill. Let us know if your question answered in some terms or fully.