Thank you for reporting a bug to Unity.
After reviewing the behavior, we've confirmed it aligns with the current design and intended use of the feature.
Properly truncating long names in dropdown menus will be addressed as a valide, but separate issue as we understand this may differ from your expectations.
We will close this case as 'As Designed.' If you have feedback on how the feature could better meet your needs, please let us know - we value your input and consider it in future improvements.