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1
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Issue can be replicated in this demo: https://stackblitz.com/edit/7s91pn-x7hkq8

Open the demo and see the browser console that is showing following warning:

A test tag was parsed inside of a select which was not inserted into the document. This is not valid HTML and the behavior may be changed in future versions of chrome.

Seems that the text content is placed unescaped to the html causing it to be interpreted as html. Seems that the issue cannot be workaround around by escaping the data manually because then user will see the escaped value.