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The new update for the layer selection tool is that it now selects the object you click as well as activating the layer it is on. Simply choose the tool at the base of the layers panel / palette and move the cursor across the document to the object on a different layer you wish to select. Click that object and you will see the layers palette update showing the new layer now active and the object you clicked is itself selected. You can also use keyboard shortcut Ctrl + Alt (option) + Click.