Right now when a DropDownList has PopupHeight="Auto" the popup gets the height necesaary to display its items properly.
But when there are many items the popup also displays all items without a vertical scrollbar (maybe over the entire page and beyond), which is not good.
My suggestion would be to add a property for specifyig a "MaxPopupHeight" to limit the growth of the popup.
Also if "PopupHeight" is not specified it should take "Auto" as the default value instead of a static height in px, instead give the new "MaxPopupHeight" a limiting default value.
Released in 3.0.0 through PopupSettings tag: https://docs.telerik.com/blazor-ui/upgrade/breaking-changes/3-0-0#popup-settings