When using a custom optionLabelTemplate and valueTemplate with Font Awesome dual tone icons it seems we need to set the display css class to inline-flex to keep the icon from separating (Kendo UI v2020.3.1021 in Chrome v88.0.4324.104).
$("#dropDownList").kendoDropDownList({ optionLabel: "Select One" , template: "<i class=\"#=icon# mr-1\" style=\"font-size: 25px\"></i>#=name#" , optionLabelTemplate: "<i class=\"fad fa-hard-hat mr-1\" style=\"display: inline-flex\"></i>Select One" , valueTemplate: "<i class=\"#=icon# mr-1\" style=\"display: inline-flex\"></i>#=name#" ...});