When using AngularJS binding for dropdownlist options in the latest version of Kendo (2018.3.1017), the option labels are not dynamically bound to the scope/controller. I changed one of the options to have the label {{::foo}} and set the field foo to "BAR" when initializing the scope. When I run this code with the latest version, the literal text "{{::foo}}" is displayed for the first item of the drop down. When I use an older version of Kendo (2018.2.516), the text "BAR" is displayed for that item. This is a regression bug that is causing an error in our product.
Here is a testcase that illustrates the problem. To toggle between the working and broken versions, change the CDN values.