Hi Anita,
Hmm... I was expecting that, but it doesn't behave that way for me. I've checked the processing settings, see pic.
I found out in a training session today, all five QGIS users on their own laptops experienced the same thing... No, four, one was using 2.14 :-)
The clip itself runs fine (I checked using a Provider feature filter as a workaround), but the active selection is not used. Maybe broken?
<img src="http://osgeo-org.1560.x6.nabble.com/file/n5289116/settings.png" border="0"/>
Erik.
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