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I tried to isolate the factors and figured out the solution
When you select an unit it doesn't play any special animation, the only thing that happens is that the Portrait model is summoned down below at the UI. If you have an Omnilight there, it will be restricted to the portrait area. However if that light object is set to an Ambient light, it will affect the whole game environment. (It's a WC3 glitch more than anything.)
To fix it set your light in portrait to Omnidirectional, or Directional.