highlightFirst: true puts the focus on the first item. In the following scenario the first item is not focused (highlighted)
The first time - the first listview item is focused, The second time - the last selected item is focused.
The last selected items to be focused on opening the dropdown in both cases.
After discussion - the first item should not have the focus once the popup is closed. If item is selected and the popup is opened - the last selected item should be focused.
Assessing the issue title and description, it appears that the initial expected result is actually the improper behavior. Point 3 in "Reproduction of the problem" state:
I will update the issue title according to the fix applied.
Most helpful comment
After discussion - the first item should not have the focus once the popup is closed. If item is selected and the popup is opened - the last selected item should be focused.