Regression introduced in R1 2022. Reproducible only with the LESS themes.
Dojo example: https://dojo.telerik.com/UQOniRab
The option label item's height is very small and no hover/select styles are applied to it. When the option label has some text, its height is ok, but again no hover/select styles are applied.
The option label item's appearance should match that of the other items.