[autocomplete] freeSolo+multiple: Previously added chip is removed when typing a substring value

[vrachuri28]

Steps to reproduce

1. Open this live example: https://stackblitz.com/edit/github-tuzwikp?file=src%2FApp.tsx
2. In the Autocomplete, first select the option “the shawshank redemption”.
3. Then type “the” into the input and press Enter.

Result: the previously added chip (“the shawshank redemption”) becomes deselected, and only the substring (“the”) is left in the input.

Current behavior

In freeSolo + multiple mode, typing a value that is a substring of an existing option causes the previously created chip to be deselected. The input keeps only the new substring instead of preserving the chip.

Expected behavior

Both chips should be created independently since freeSolo is enabled.
Adding a substring should not remove or deselect the previously added chip.
This issue appears specifically when a shorter substring is added after a longer string.

Context

This issue breaks the expected freeSolo behavior, where every typed value—regardless of whether it matches or partially matches an existing option—should result in a new chip.

Users who type multiple related values (e.g., substrings, tags, or keywords) will lose their previous selections, making the component behave unpredictably.

This affects Autocomplete in real-world tagging or categorization UIs where freeSolo and multiple modes are commonly used together.

Your environment

npx @mui/envinfo

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Search keywords: autocomplete freesolo multiple substring chip removed deselect input typing option existingvalue

[mj12albert]

@vrachuri28 Your stackblitz link 404s

Here's a working example with freeSolo + multiple: https://stackblitz.com/edit/xmnj21qx-u9fyvpdm?file=src%2FDemo.tsx

[vrachuri28]

I can see that the issue is reproducible here as well. : https://stackblitz.com/edit/xmnj21qx-u9fyvpdm?file=src%2FDemo.tsx.
Could you try removing all chips and then add any chip with the value including 'the'(The Godfather or any other value) and then try adding just 'the' and hit enter. Attaching snapshots for reference.

Also the same issue is reproducible here: https://mui.com/material-ui/react-autocomplete/

[mj12albert]

@vrachuri28 I see what you mean – it's because when you type the after selecting the first item, the list is still retaining the highlight on the already-selected option, so Enter seems to be deselecting it

Use the filterSelectedOptions prop to exclude selected options from the list to prevent this: https://stackblitz.com/edit/xmnj21qx-u9fyvpdm?file=src%2FDemo.tsx

[vrachuri28]

Using the filterSelectedOptions prevents the chip-removal issue, but it breaks checkbox mode. In checkbox mode, selected items disappear from the dropdown (because they're filtered out), making it impossible for users to see or uncheck them. So this workaround isn’t viable for scenarios where checkboxes are used.

[ZeeshanTamboli]

@vrachuri28 Does this work for you: https://stackblitz.com/edit/xmnj21qx-jbcoet9w?file=src%2FDemo.tsx? Make the Autocomplete a controlled component. Try modifying it for your use case.

I think we should close this issue.