Steps to reproduce: 

1. Record a test against the demo page. 
2. Select an item from the DropDownList control.
3. Note! the recorded step to select an item from the dropdown is not the KendoAngularList one, but is the KendoListBox. 
4. Execute the test.
Expected: to pass the test.
Actual: the correct item from dropdown is selected, but the step is failing with unexpected error. 

Workaround to resolve the issue: Open Project Settings and disable the Kendo UI jQuery translators (or the ListBox one only), save the changes and re-record the respective steps in a new recording session. This will record the correct steps and the execution should work as expected.