jQueryUI autocomplete not working with dialog and zIndex

Question

I ran into an interesting issue with jQueryUI autocomplete in a dialog box.

My dialog HTML looks like this:

Answer 1

Tried everything mentioned here (some failed whenever I hover over items and return again), but this is the only thing that worked for me in all cases:

$("selector").autocomplete({
    ...
    appendTo: "body",    // <-- do this
    close: function (event, ui){
        $(this).autocomplete("option","appendTo","body");  // <-- and do this  
    }
});