What happens is (1) the select only populates with the single 'test 1' option value (2) on first click of the select this single option (still only one option) is displayed as per usual with JQueryMobile (3) on select of this 'test 1' option the select then loses its selected option rendering the select empty (4) on third click of the select control it then re-displays the option list but this time correctly showing both options?
This just saved me after a couple of hours struggling with this same problem. It seems that JQM creates a new element with the content of the selected option and then makes the select element transparent. Changing the values does not seem to trigger a refresh but your hack worked. Thanks!
That also explains why I am not able to style the select element. I will have to figure out what element I see.