There is a new bug just introduced in Photoshop CC 2014.1 that causes the pixel selection from layers to go wrong (just as you've seen).
Drop back to 2014.0 or 14.2.1 and you will find the feature will work. Adobe has stated they're working on a fix, so I imagine a 2014.1.1 or maybe 2014.2 will be around soon to fix it.
-Noel