Telerik suggested a workaround but it seems to break other things (e.g. RadAjaxLoadingPanel)
The workaround is to subscribe to the OnClientDropDownClosed event:
function OnClientDropDownClosed(sender, eventArgs) {
var text = sender.get_text();
var item = sender.findItemByText(text)
if (item) {
item.select();
}
else {
sender.clearSelection();
}
}
Is the plan to fix this bug anytime soon?