Hello,

Thank you for your feedback. This is a known issue - https://github.com/telerik/kendo-ui-core/issues/4469 . I increased its priority based on your report for it. As a workaround we may handle the click event of the clear button and call MultiSelect's search method with empty string - Dojo snippet :

        $(".k-multiselect .k-clear-value").click(function() {
          var multiselect = $("#products").data("kendoMultiSelect");
          multiselect.search("");
        })

Thus, the popup shows all items as expected and the noDataTemplate will not be present anymore - the add new item button will not be available for clicking.

Regards,
Dimitar
Progress Telerik