I tried to replicate the described issue locally but to no avail.
Could you please let me know which version of the controls are you using.
Find attached a sample runnable application which demonstrates the correct behaviour of the mentioned property. When it is set to "SelectAll" the whole text is selected and if you start typing the old value is replaced by the new one. This is actually the default value of this property and if t is not set the controls behaves the same way.
Test the application on your side and let me know what the difference in your case is.
All the best,
the Telerik team
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