fix(material/autocomplete): clear selected option if it is removed while typing

src/material/autocomplete/autocomplete-trigger.ts

@@ -506,6 +506,18 @@ export class MatAutocompleteTrigger
 
       if (!value) {
         this._clearPreviousSelectedOption(null, false);
+      } else if (this.panelOpen && !this.autocomplete.requireSelection) {
+        // Note that we don't reset this when `requireSelection` is enabled,
+        // because the option will be reset when the panel is closed.
+        const selectedOption = this.autocomplete.options?.find(option => option.selected);
+
+        if (selectedOption) {
+          const display = this.autocomplete.displayWith?.(selectedOption) ?? selectedOption.value;
+
+          if (value !== display) {
+            selectedOption.deselect(false);
+          }
+        }
       }
 
       if (this._canOpen() && this._document.activeElement === event.target) {
@@ -640,18 +652,16 @@ export class MatAutocompleteTrigger
         ? this.autocomplete.displayWith(value)
         : value;
 
+    if (value == null) {
+      this._clearPreviousSelectedOption(null, false);
+    }
+
     // Simply falling back to an empty string if the display value is falsy does not work properly.
     // The display value can also be the number zero and shouldn't fall back to an empty string.
     this._updateNativeInputValue(toDisplay != null ? toDisplay : '');
   }
 
   private _updateNativeInputValue(value: string): void {
-    // We want to clear the previous selection if our new value is falsy. e.g: reactive form field
-    // being reset.
-    if (!value) {
-      this._clearPreviousSelectedOption(null, false);
-    }
-
     // If it's used within a `MatFormField`, we should set it through the property so it can go
     // through change detection.
     if (this._formField) {

src/material/autocomplete/autocomplete.spec.ts

@@ -705,6 +705,65 @@ describe('MDC-based MatAutocomplete', () => {
     }).not.toThrow();
   });
 
+  it('should clear the selected option if it no longer matches the input text while typing', fakeAsync(() => {
+    const fixture = createComponent(SimpleAutocomplete);
+    fixture.detectChanges();
+    tick();
+
+    fixture.componentInstance.trigger.openPanel();
+    fixture.detectChanges();
+    zone.simulateZoneExit();
+
+    // Select an option and reopen the panel.
+    (overlayContainerElement.querySelector('mat-option') as HTMLElement).click();
+    fixture.detectChanges();
+    tick();
+    fixture.detectChanges();
+    fixture.componentInstance.trigger.openPanel();
+    fixture.detectChanges();
+    zone.simulateZoneExit();
+
+    expect(fixture.componentInstance.options.first.selected).toBe(true);
+
+    const input = fixture.debugElement.query(By.css('input'))!.nativeElement;
+    input.value = '';
+    typeInElement(input, 'Ala');
+    fixture.detectChanges();
+    tick();
+
+    expect(fixture.componentInstance.options.first.selected).toBe(false);
+  }));
+
+  it('should not clear the selected option if it no longer matches the input text while typing with requireSelection', fakeAsync(() => {
+    const fixture = createComponent(SimpleAutocomplete);
+    fixture.componentInstance.requireSelection = true;
+    fixture.detectChanges();
+    tick();
+
+    fixture.componentInstance.trigger.openPanel();
+    fixture.detectChanges();
+    zone.simulateZoneExit();
+
+    // Select an option and reopen the panel.
+    (overlayContainerElement.querySelector('mat-option') as HTMLElement).click();
+    fixture.detectChanges();
+    tick();
+    fixture.detectChanges();
+    fixture.componentInstance.trigger.openPanel();
+    fixture.detectChanges();
+    zone.simulateZoneExit();
+
+    expect(fixture.componentInstance.options.first.selected).toBe(true);
+
+    const input = fixture.debugElement.query(By.css('input'))!.nativeElement;
+    input.value = '';
+    typeInElement(input, 'Ala');
+    fixture.detectChanges();
+    tick();
+
+    expect(fixture.componentInstance.options.first.selected).toBe(true);
+  }));
+
   describe('forms integration', () => {
     let fixture: ComponentFixture<SimpleAutocomplete>;
     let input: HTMLInputElement;