Kendo multiselect doesn't set pre-loaded value with 2016.1.226

This is regarding bug with Kendo MultiSelect control.
We have updated kendo UI version from 2014.3.1411 to 2016.1.226
Below code was working fine with version 2014.3.1411 for kendo multiselect (It was able to perform below operations)
1. set pre-loaded value in kendo multiselect
2. data filtering while typing in kendo multiselect.

  ms = $(this).kendoMultiSelect({
                itemTemplate: inlineTemplate,
                tagTemplate: tagTemplate,
                delay: 200,
                placeholder: placeHolder,
                minLength: 3,
                maxSelectedItems: maxSelects,
                autoBind: true,
                change: change,
                select: select,
                dataSource: preSelected,
                dataValueField: returnField,
                value: preSelectedObjectSids,
               dataTextField: "DisplayName"               
            }).data("kendoMultiSelect");
    ms.setDataSource(ds);

Now, The above operations has stopped working due to upgrade in its version to 2016.1.226

Tried to set multiselect value i.e. ms.value(preSelectedObjectSids) but it doesn't work.

when i remove  ms.setDataSource(ds) from above code, kendomultiselect holds the pre-loaded value but then it changes the entire datasource to single pre-loaded value. Obviously i cannot search or set any other value further in the multiselect

Is this known issue in latest kendo UI version 2016.1.226?

Could you suggest what i can try to fix this problem?