Judging by the provided screenshot, the <input> element, from which a Kendo UI ComboBox is created, is also used by jQuery Mobile to initialize a jQuery widget. As a result, jQuery Mobile wraps the invisible <input> of the ComboBox in a <div> element with some jQuery Mobile CSS classes (ui-input-text ui-shadow-inset, etc). This breaks the Kendo UI ComboBox HTML markup and layout.
Creating two different widgets from the same <input> element is bound to cause undesired side effects, such as the observed one. Please check how to make jQuery Mobile ignore elements, which are used by Kendo UI.
By the way, it is unlikely that the ComboBox data-binding technique (remote vs local) is related to the problem.
Join us on our journey to create the world's most complete HTML 5 UI Framework - download Kendo UI