fix: Workspace switcher - Selection disappears after erasing characte…

…r with workspace selected.

Signed-off-by: Krishna Gupta <[email protected]>

src/components/SelectionList/BaseSelectionList.tsx

@@ -539,14 +539,16 @@ function BaseSelectionList<TItem extends ListItem>(
 
     const prevTextInputValue = usePrevious(textInputValue);
     const prevSelectedOptionsLength = usePrevious(flattenedSections.selectedOptions.length);
+    const prevAllOptionsLength = usePrevious(flattenedSections.allOptions.length);
 
     useEffect(() => {
         // Avoid changing focus if the textInputValue remains unchanged.
         if ((prevTextInputValue === textInputValue && flattenedSections.selectedOptions.length === prevSelectedOptionsLength) || flattenedSections.allOptions.length === 0) {
             return;
         }
         // Remove the focus if the search input is empty or selected options length is changed else focus on the first non disabled item
-        const newSelectedIndex = textInputValue === '' || flattenedSections.selectedOptions.length !== prevSelectedOptionsLength ? -1 : 0;
+        const newSelectedIndex =
+            textInputValue === '' || (flattenedSections.selectedOptions.length !== prevSelectedOptionsLength && prevAllOptionsLength === flattenedSections.allOptions.length) ? -1 : 0;
 
         // reseting the currrent page to 1 when the user types something
         setCurrentPage(1);
@@ -560,6 +562,7 @@ function BaseSelectionList<TItem extends ListItem>(
         textInputValue,
         updateAndScrollToFocusedIndex,
         prevSelectedOptionsLength,
+        prevAllOptionsLength,
     ]);
 
     useEffect(