Tag List doesn't work when setting nested items as Checked

[Preston]

I'm having an issue with the DropDownTree (with checkboxes) when trying to display a user's saved selections.  When you render the tree with the following code taken from the example here and try to set some of the items as Checked by default, only the deepest level item is displayed in the tag list.  However, if the user checks nested items, all levels are displayed in the tag list.  You can see in the attached images the same items are selected, but the tag list is rendered differently.  Is this a bug in the DropDownTree?

@(Html.Kendo().DropDownTree()
    .Name("DropDownTree")
    .AutoClose(false)
    .Checkboxes(true)
        .Items(dropdowntree =>
        {
            dropdowntree.Add().Text("My Documents").Id("1")
                .Expanded(true)
                .Checked(true)
                .Items(root =>
                {
                    root.Add().Text("Kendo UI Project").Id("2")
                        .Expanded(true)
                        .Items(project =>
                        {
                            project.Add().Text("about.html").Id("3").Checked(true);
                            project.Add().Text("index.html").Id("4");
                            project.Add().Text("logo.png").Id("5");
                        });

                    root.Add().Text("New Web Site").Id("6")
                        .Expanded(true)

                        .Checked(true)
                        .Items(item =>
                        {
                            item.Add().Text("mockup.jpg").Id("7");
                            item.Add().Text("Research.pdf").Id("8");
                        });

                    root.Add().Text("Reports").Id("9")
                        .Expanded(true)
                        .Items(reports =>
                        {
                            reports.Add().Text("February.pdf").Id("10").Checked(true);
                            reports.Add().Text("March.pdf").Id("11").Checked(true);
                            reports.Add().Text("April.pdf").Id("12");
                        });
                });
        })
)

[Dimitar]

Hello Preston,

The described behavior was a known issue in the Kendo UI DropDownTree in versions prior to R3 2018. The issue is logged in the official Kendo UI GitHub repository and you can find additional information in item #4411. The issue is fixed in the latest version of the product. Therefore, in order to successfully resolve the issue, the recommended approach is to upgrade the project to use the latest version of the Telerik UI for ASP.NET Core package. 

Regards,
Dimitar
Progress Telerik

[Preston]

Thanks for the info Dimitar.  However, I am currently using the latest version of the package Telerik.UI.for.AspNet.Core (2018.3.1017)  and this issue still exists.

[Dimitar]

Hello Preston,

I will need additional information in order to continue my investigation regarding the observed issue. Therefore, I would suggest you to open a separate support thread, where you could provide an isolated solution that demonstrates the issue, so that I am able to examine the exact scenario and widget configuration on my end and advise you further.

Regards,
Dimitar
Progress Telerik