Follow up to my own question: my Locations are subsidiary specific so each location is manually assigned to a sub.  My Classes and Departments are tagged to the Parent sub and include all children =  true.  IF I edit a Class and manually select all Subs, then I see the Class appear in the drop-down on the Auto-Create window.   Just like the Location list.  The system ignore my Class or Department list when they are tagged to Parent Sub and Include all children = true.  Should this be a support ticket to NS?  Has anyone else dealt with this issue?