Thanks for contacting us.
I have tried to reproduce the issue in a list box with a ListHeaderTemplate defined by setting the Visibility property of the root element of the template to Collapsed but everything works as expected on my side.
Could you please reveale some further details on how you are updating the visibility, whether you are doing this dynamically or you are simply exchanging templates?
A demo project that reproduces the scenario would be the best way for me to investigate the case and further assist you.
Please note that you will have to open a new support ticket in order to be able to attach your project.
Thanks for your time.
the Telerik team
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