Update button does not respond in grid popup when using Kendo Editor

[Jason]

Our project is using the pop-up editor from a grid.  Our target is IE8.
Kendo version: 2013.3.1316.440 (as well as previous versions)
 
@(Html.Kendo().Grid<OurVieModel>()
    .Name("grid")
    .Columns(columns =>
    {
…
    })
    .Editable(editable => editable.Mode(GridEditMode.PopUp).TemplateName("OurTemplate").Window(w => w.Title("Add/Edit")))
 
 
Our template is defined as (trimmed for readability):
@(Html.Kendo().Editor()
.Name("OurValue")
.HtmlAttributes(new { style = "width: 573px;height:240px" })
.Tools(tools => tools
.Clear()
.Bold()
))
 
We are finding that whenever we apply a BOLD style to our text in the editor (or any other formatting applied from the toolbar), the Update function does not respond.  It will act as if it is clicked, but no action.  Cancel, however, always works.  Oddly, removing all bolding from the text allows Update to function again.    
 
We also found that hitting the enter key and putting a few lines in the text produces the same non-action state for the Update button.

Replacing Kendo Editor with a text area works without issue.  Viewing and editing the text within the Kendo Editor without applying any styles works without issue. The issue appears specific to the styling applied by the Editor.

No call is being made back to the controller when the update button is in this non-functional state. A call is made if a style is not applied.

Any insight or workaround to this issue?
 
Thanks!

[Alexander Popov]

Hi Jason,

This behavior could be observed when the back-end forbids HTML tags in the values for security reasons. If that is the case indeed, then adding the AllowHtml attribute to the model's field holding the Editor's value should resolve the issue. I would also recommend checking this article.

Regards,
Alexander Popov
Telerik