EDITED:
When I load a form dynamically inside another form or container control, the editing behaviour of all the form's components is different. Text editing, in a TextBox or ComboBox, does not allow me to select partial text with the mouse, though I can double click to select all the text in the control.
FormChild form = new FormChild();
form.TopLevel = false;
form.Dock = DockStyle.Fill;
Controls.Clear();
Controls.Add(form);
form.Show();
The controls work as expected when I show the form normally, using Show() or ShowDialog(), but not inside something.
The initial question was regarding a form inside a panel, but I've now removed the panel and tried loading the form inside the outer form, or any other container control.
NOTE: I'm getting a lot of comments about how "weird" this is. We've been embedding forms inside MFC controls using FormView for years, so I don't know why this is so weird to people. It is a common concept. In any case, saying it is weird isn't a solution.
EDIT: I should have used a User Control in the first place. Thanks guys.