In your case the error is observed because you are setting a value initially when using v-model. Yet as it is described in Kendo documentation here - 'As of the Kendo UI R3 2016 release, the implementation of the valueMapper function is optional. It is required only if the widget contains an initial value or if the value method is used.'
If you are not setting initial value the component is working correctly even without valueMapper as it can be seen here.