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The behavior currently being experienced is expected behavior. The dropdown menu retracts only when using a single value dropdown filter not a multiple. The purpose of the multiple value drop down menu is to be able to select multiple values. Tableau Server nor Tableau Desktop does not know when the selection of multiple values is done even after selecting the apply button, therefore it does not retract the dropdown menu.
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Thank you for the information.I have created the idea, lets hope it gets implemented.