Highlight Collection when object is selected

There is also ability to set active collection in Collection Manager with buttons with collection icon.

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You can also download fresh CM version from there as a regular zip addon

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There is a new RCS propsal regarding child highlighting - https://blender.community/c/rightclickselect/qQXy/#

Maybe this time we have a bit more luck, perhaps due to the current UI overhaul work. Exposing it in the theme settings could be a compromise.

Not being able to clearly see selected objects in the outliner if inside a collapsed hierarchy is something that would need to be resolved sooner than later.