I am sorry for the misunderstanding. The described issue with the jQuery 3.1.1 version, and Kendo UI 2017.1.118 is related to the MVC Grid only, and is indeed fixed.
You should expect the working version later this week along with our next service pack, scheduled for this Thursday.
As for the Kendo UI 2016.3.914 version, mentioned in the opening post, jQuery 3.1.1 is not supported altogether.
To sum up - support for jQuery 3.1.1 is available in the 2017.1.118 version, but the fix for the specific issue with the foreign key column in a MVC wrappers-generated Grid, will be released with the next Service Pack later this week. I hope this clears up the misunderstanding, and everything will be working fine for you after installing the Service pack when it becomes available.
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