The HATCH command in AutoCAD with the "Object Selection" option avoids by default any islands inside the selected hatched objects (uses the "every other" nested method) and any partially overlapping areas in the objects.
If you want to hatch selected boundaries "en mass" (selecting them by All, Window, etc.), regardless of any nested areas or boundary overlaps, select the "Ignore Island Detection" option in the Options pop-up panel (or in the Hatch dialog) when hatching (or the older "No Island Detection", HPISLANDDETECTIONMODE and HPISLANDDETECTION) and "Create separate hatches" (HPSEPARATE):
The "Create separate hatches" option will not show up in the preview and will create separate hatch objects for each area (in the overlapped area, the hatchure will be twice). Thus, you cannot create one common hatchure fully covering overlapping objects (without skipping their intersection). You can achieve this by using the internal pick point (not the object) selection method - this method creates its own auxiliary "outline" hatch boundary.
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Please use these tips at your own risk. Arkance Systems is not responsible for possible problems that may occur as a result of using any of these tips.