There is no way you can highlight playing track by clicking on "Locate playing track at source" or double clicking at the header of playing track when there is selected "Display first few tracks only" setting in "Album and Tracks" panel customization. That does not work only when the playing track is "collapsed" and not shown in the "Album and Tracks" panel. It would be nice if it worked by finding playing track and expanding the list automatically while user is trying to locate it.