- The "Select All/One" button's icon indicates the result of the action; it attempts to communicate what will happen when the button is clicked.
- The "Move Freely/Hold Position" button's icon indicates the current state; it attempts to communicate what is happening now.
Can you see why that can get confusing? Two toggle switches right next to each other, both of which toggle back and forth between only two options, but are difficult to figure out because their feedback methods are perfectly out of phase, resulting in cognitive dissonance.
If you're building toggle commands into your website/software, double check that the feedback/communication is consistent. Which method is best? That's hard to say. When in doubt, do some user testing. Honestly the method you use - whether it's one of the above or something else you've come up with - matters a lot less than making your method consistent because, even if it's confusing at first, the across-the-board consistency means people only have to figure it out once.