[autocomplete] renderOption is extremely slow

Duplicates

• I have searched the existing issues

Latest version

• I have tested the latest version

Steps to reproduce 🕹

Go to this sandbox: https://stackblitz.com/edit/react-nv8116-okqafc?file=demo.tsx

Steps:

1. Have more than 500+ entries as Autocomplete options
2. Expand the dropdown or start typing anything
3. Observe the extreme lag on expand or when typing/deleting the first letter

Current behavior 😯

Extreme lag when Autocomplete is using renderOption with somewhat "large" entries.

Expected behavior 🤔

Expect it to not lag... or at least for things as little as under 1-2000 entries, it shouldn't be that bad.

Context 🔦

There is another ticket trying to resolve this issue but it looks like the changes to the virtualization never got merged into any release?

https://github.com/mui/material-ui/issues/25417

The merged fix seems to be only address the documentation (based on the title).

I don't think renderOption should be re-rendering everything from scratch on every operations (expand, keypress)?

Your environment 🌎

See sandbox.

Start with the linked StackBlitz sandbox and its demo.tsx to reproduce the lag with 500+ Autocomplete options and renderOption. Read issue #25417 for the referenced virtualization context; done means expanding and typing or deleting in the dropdown no longer causes extreme lag for roughly 1,000–2,000 entries.