Based on the latest Known Issues post on Lodestone, Close All still deselects target when you have the non-separated Target Info. If you use split Target Info, you have to use the Cancel button. It sounds like they just didn't divide the behavior between the two binds properly, as explained in my big report.

Once everything is fixed, it will be a great change, because spamming Cancel will cancel and deselect target, without bringing up the System Menu.