It works fine if I don't use the dataSource ... here is a js fiddle that illustrates the issue http://jsbin.com/efucir/1/edit
. If I have in the header the old kendo UI scripts as well as the new ones (commented out by default). If you look at the output you can see the DataSource fetch gets caught by mockjax, and then if you press the button you can see the $.post getting intercepted.
If you comment out the old kendo source and put the new ones in, you can see that the data source no longer works but the manual approach still does (which leads me to believe it is not a jQuery issue).
My heart is not set on using mockjax, I am sure there are other ways to mock the server data if there is a better approach to solving this I would love to hear about it. Perhaps using a spy from Jasmine would work ...
Thanks for your help.