Double-clicking in the Navigator is the correct way to scroll to the designated destination. What happens next depends on the nature of the target.
For “graphical” objects (images, drawings objects), the target is selected, hence you see the green handles.
For text objects (headings, tables, frames, sections), the supposed intent is to edit text there. The cursor is positioned at the first location where text can be entered (after all, we’re in a text document application). In the case of text inside a frame, you need to click on the outline if you want to act on the frame (I hope you work with View>Text Boundaries enabled otherwise you’ll have hard time, especially if frames are nested).
For hyperlinks and indexes, the situation is not that clear (for me) because the target is frequently a protected item.
I don’t think this is a bug. Your use case may be different from the most common one.
If you only want to see the frames, enable View>Text Boundaries.
If you need frequently to adjust frame properties, ask yourself if a couple of frame styles could not give a more consistent formatting to your frames.
Also, if your frames have a complex structure (many nested frames), see if you are not in fact simulating a relationship property between objects which could much more easily be shown in a Draw structure and then imported as an image in a s non-nested frame. Remember that Draw comes for free with the suite and is much more powerful than the simplified drawing tool in Writer.
EDIT 1
From comments in your screenshot: it seems there is an inconsistent (?) behaviour.
Double clicking on an image or drawing object in the Navigator scrolls to this targets and selects the object, showing the handles. If you then double-click on a frame, you get both the cursor and the handles. But if you click on a table name, there no cursor though you scrolled there and keyboard typing is ineffective. This one is a bug.
If you start from any frame to switch to another frame, you only get the cursor.
As I mentioned, the focus on frame is text entry. You could have the handles, meaning the focus is on adjusting frame properties but usually (or in principle) frames are controlled by a style and you would not add direct formatting to them. A “styled” workflow emphasises authoring, leaving formatting for another “independent” step.
EDIT 2
Reported as tdf#133039
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