The TARGET(SELECT) was documented incorrectly and unfortunately does not work the way you are attempting to use it.
TARGET(SELECT) was intended to only be used in a limited fashion, specifically on a TSS CREATE command where either the USING keyword or the DEFNODES keyword were supplied on the command.
The purpose of this was to make sure the command was sent to CPF after all local processing had been completed successfully, not before which is how most CPF targeting is performed.
If you want DEFNODE processing to work without the user having to enter additional target information then you should set CPFTARGET to AUTO.
The documentation will up corrected.