As per usual when making automated tests I use "Inspect"(CTRL+SHIFT+I) in Chrome to find element by xpath, id, CSS selector etc. For example:
//li/a
The major issue is with DevTools within Google Chrome 84.0 which doesn't highlights the first matched element.
Incase, the locator finds a single match, the search result does show 1 of 1 but the WebElement is not highlighted within the DOM Tree
As an example, the Search Box within the Google Home Page can be identified uniquely using the css-selector:
[name='q']
or using the xpath:
//*[@name='q']
But google-chrome-devtools within Google Chrome 84.0, does finds the element and shows 1 of 1 but the element is not highlighted.

However, if there are multiple element matching to the Locator Strategy, leaving out the first matched element, the other elements are highlighted.
This issue was raised in the Platform>DevTools queue through Issue 1108311: The first matched element in the Elements panel is not getting highlighted as per the cssSelector and had been merged into Issue 1103316: Elements search does not resolveNode (highlight text, etc) on first search result where we are actively tracking the issue.
As per @bugdroid the main issue was caused because a check to ensure the search results were valid did not account for the case where the index was 0, so all highlight results of index 0 (index 1 to the user) were no longer highlighted.
The fix for this issue is Merge-Approved in:
For alternate solutions using the current google-chrome Version 84.0.4147.89 you can find a detailed discussion in Why XPath does not highlighted the yellow mark in Chrome84?