I just created a html page using the Select code you provided. I am able to use SelectItemByText to select the item I desire with no trouble. The text must match exactly however. What does your automation look like?
Even It's working for me when I create separate html page for Select code alone. But it doesn't work when i try to interrogate with the whole application that contains the select list. Kindly help me out to find the root cause of the probelm. I have also attached the screenshot of the automation.