This issue can be seen in the Telerik Demo Application - UI for WinForms. In the list at the left, select "DropDown & List". From the DropDownList group of demos, select "Auto complete" (the one with the list of countries and their flags). When the list is first displayed the dropdown list is opened and focus is in the keyin field. Key in the letter 'C'. You will see the list of countries that begin with 'C' over the original list of all countries. See the attached image.
Is this a defect? Is there a way to work around the issue?