I can see this using Zero-K v1.7.10.0 - you can select AI controlled units and issue them orders. They don't need to be
friendly AI controlled - you can issue self-destruct orders to enemy units, and they'll obey.
Drag selecting doesn't work - you need to click on the unit/radar dot directly.
Could God mode be being enabled by default?
Example replay:
http://zero-k.info/Battles/Detail/790764