Struggling with remote search + select pattern in combobox

[codingpoets]

First of all, I am a beginner when it comes to TypeScript, Vue and Vuetify, but I unfortunately I am in a position where I need to debug a somewhat complex web app using vuetify.

The issue that I experience with the application is connected to the implementation of a "remote search + select" pattern. Starting with Vuetify@3.7.12, for some reason the search field is cleared whenever I type something.
I prepared a strongly reduced, reproducible example in this vplay.

When switching from Vuetify 3.7.12 to 3.7.11 in the example, you can see that it works as I expect it to.

I also added some console log statements to show me what is going on when I type "b" inside the search field.

For vuetify@3.7.11 the logs are:

For vuetify@3.7.12 the logs are:

I don't get why the search string is always cleared in the 3.7.12 version and above?
I suppose it might have something to do with resetting/updating the serverItems, but I have no idea how I should do it differently.
I was told in issue#22089 that this is a OSI layer 8 issue, which very well might be the case, but I am struggling to find a solution.
Concerning the comment in the issue:
The model-value should only get a real value (different from null) when an entry is selected (or in the original code a new one is created; neglected in this example). Therefore it is set to null for any string input and only really updated when a model is selected (which I neglected as not being part of the issue).

Can somebody help me find a solution to this?
Any help or guidance is appreciated!

[J-Sek]

async function setModelValue(value: Model | string | undefined) {
  if (!value || typeof value === "string") {
      model.value = null
// ...

You are interrupting the typing by resetting the field to null.
VCombobox is basically a text field with a dropdown for suggestions, value in this event handler is expected to be string most of the time, so the logic here is just wrong.