Hi Vinayak,
Greetings from Syncfusion support.
We have checked the provided screenshot and tried to reproduce the reported issue with enabling the features which are enabled in the provided screenshot. We have prepared the simple sample based on the provided screenshot and attached it below.
Please check the above sample and still issue persists, please revert us with reproducing sample and code example (which properties are enabled in MultiSelect component), Syncfusion product version that will help us to check and proceed further at our end.
Regards,
Sureshkumar P