I guess it's due to the Kendo UI widget working differently.
The new widget doesn't show the edit field for "Fetch all records at once" but you can start typing and it will find records that start with entered letters. It even does it as case-insensitive search (this wasn't the case in 6.0).
The new widget is a bit annoying for the "Fetch records dynamically as user types". In this case you have to open the drop-down to start searching (mouse or Alt+ArrowDown). I would prefer to start a search without this step. I've put the instructions for Alt+ArrowDown in the 'Undefined' text for the field's Presentation settings.