Repro steps:
1. Import the attached package and open the Repro Scene.
2. In the scene view, make sure that Selection Outline is on (under Gizmos)
3. Select 'VFX Mesh Capsule' in the scene.
4. Open the VFX.
5. Change the position of the Capsule Output Mesh.
6. Observe the outline gets offset offset roughly twice as far

Expected outcome:
The outline to follow the particles or mesh output

Notes:
- If the particle system is set to Local, it also gets offset.
- Adding another mesh output (cube) seems to make it be outlined twice
- Mesh Outputs using the ShaderGraph shader offsets the particles as well. Outputs without it only affect the outline of the mesh output itself.
- Found in 7.1.8, but it's an old issue.