I hope customer can hide options both All appricable records and All records on all pages in the Select Records dialogue.
CRM ignores selected records ,when customer selects records on view and click Run Report.
Please confirm following example.
1. Open Sales > Accounts > Active Accounts and select some records.
2. Click ... , Run Report and Account Overview in the Run on Selected Records.
3. Select Records dialogue is appeared with following selectable options.
a. All applicable records
b. The selected records
c. All records on all pages in the current view
Customer does not want to show it anything other than the record which he selects.
In other words, customer does not want to need option a and c, because he selected records before this dialogue.