Hi Ryan Tomko,
We would like to inform you that when both allowCustomValue and allowFiltering are set to true, typing a partial value that is present in the data source will be considered a custom value. This is the intended behavior.
However, we have reviewed your second query—"Focus does not move to the fully matching item in the popup when allowCustomValue is set to true"—and identified it as a bug. We are able to replicate the reported issue. We have considered this as a bug from our end we will include the fix in the First week of April weekly patch release. You can track the status of the issue by the below feedback link.
Feedback Link : https://www.syncfusion.com/feedback/66069/focus-does-not-move-to-the-fully-matching-item-in-popup-when-allowcustomvalue-is
Disclaimer: “Inclusion of this solution in the weekly release may change due to other factors including but not limited to QA checks and works reprioritization.”
Regards
Yaswin Vikhaash