Explore Angular Material documentation for chips to find a helpful example on setting up a multiple selection autocomplete feature:

<mat-form-field class="example-chip-list">
  <mat-chip-list #chipList>
    <mat-chip
      *ngFor="let fruit of fruits"
      [selectable]="selectable"
      [removable]="removable"
      (removed)="remove(fruit)">
      {{fruit}}
      <mat-icon matChipRemove *ngIf="removable">cancel</mat-icon>
    </mat-chip>
    <input
      placeholder="New fruit..."
      #fruitInput
      [formControl]="fruitCtrl"
      [matAutocomplete]="auto"
      [matChipInputFor]="chipList"
      [matChipInputSeparatorKeyCodes]="separatorKeysCodes"
      [matChipInputAddOnBlur]="addOnBlur"
      (matChipInputTokenEnd)="add($event)">
  </mat-chip-list>
  <mat-autocomplete #auto="matAutocomplete" (optionSelected)="selected($event)">
    <mat-option *ngFor="let fruit of filteredFruits | async" [value]="fruit">
      {{fruit}}
    </mat-option>
  </mat-autocomplete>
</mat-form-field>

In essence, this code snippet demonstrates a chip list linked to a list and a text input that enables searching through an autocomplete list.

import {COMMA, ENTER} from '@angular/cdk/keycodes';
import {Component, ElementRef, ViewChild} from '@angular/core';
import {FormControl} from '@angular/forms';
import {MatAutocompleteSelectedEvent, MatChipInputEvent} from '@angular/material';
import {Observable} from 'rxjs';
import {map, startWith} from 'rxjs/operators';

/**
 * @title Chips Autocomplete
 */
@Component({
  selector: 'chips-autocomplete-example',
  templateUrl: 'chips-autocomplete-example.html',
  styleUrls: ['chips-autocomplete-example.css'],
})
export class ChipsAutocompleteExample {
  visible = true;
  selectable = true;
  removable = true;
  addOnBlur = false;
  separatorKeysCodes: number[] = [ENTER, COMMA];
  fruitCtrl = new FormControl();
  filteredFruits: Observable<string[]>;
  fruits: string[] = ['Lemon'];
  allFruits: string[] = ['Apple', 'Lemon', 'Lime', 'Orange', 'Strawberry'];

  @ViewChild('fruitInput') fruitInput: ElementRef;

  constructor() {
    this.filteredFruits = this.fruitCtrl.valueChanges.pipe(
        startWith(null),
        map((fruit: string | null) => fruit ? this._filter(fruit) : this.allFruits.slice()));
  }

  add(event: MatChipInputEvent): void {
    const input = event.input;
    const value = event.value;

    // Add our fruit
    if ((value || '').trim()) {
      this.fruits.push(value.trim());
    }

    // Reset the input value
    if (input) {
      input.value = '';
    }

    this.fruitCtrl.setValue(null);
  }

  remove(fruit: string): void {
    const index = this.fruits.indexOf(fruit);

    if (index >= 0) {
      this.fruits.splice(index, 1);
    }
  }

  selected(event: MatAutocompleteSelectedEvent): void {
    this.fruits.push(event.option.viewValue);
    this.fruitInput.nativeElement.value = '';
    this.fruitCtrl.setValue(null);
  }

  private _filter(value: string): string[] {
    const filterValue = value.toLowerCase();

    return this.allFruits.filter(fruit => fruit.toLowerCase().indexOf(filterValue) === 0);
  }
}

This code offers straightforward functionality such as filtering based on the text input after each character is typed and removing items from the list. Feel free to customize it further according to your specific requirements (e.g., automatically excluding selected items from future autocomplete suggestions).

Although I'm a bit late to the party, I stumbled upon this fantastic stackBlitz here. Below is the code provided by the owner:

HTML:

<mat-form-field class="example-full-width">
    <input type="text" placeholder="Select Users" aria-label="Select Users" matInput [matAutocomplete]="auto" [formControl]="userControl">
  <mat-hint>Enter text to find users by name</mat-hint>
</mat-form-field>

<mat-autocomplete #auto="matAutocomplete" [displayWith]="displayFn">
    <mat-option *ngFor="let user of filteredUsers | async" [value]="selectedUsers">
        <div (click)="optionClicked($event, user)">
            <mat-checkbox [checked]="user.selected" (change)="toggleSelection(user)" (click)="$event.stopPropagation()">
                {{ user.firstname }} {{ user.lastname }}
            </mat-checkbox>
        </div>
    </mat-option>
</mat-autocomplete>

<br><br>

<label>Selected Users:</label>
<mat-list dense>
    <mat-list-item *ngIf="selectedUsers?.length === 0">(None)</mat-list-item>
    <mat-list-item *ngFor="let user of selectedUsers">
        {{ user.firstname }} {{ user.lastname }}
    </mat-list-item>
</mat-list>

Typescript:

import { Component, OnInit, ViewChild } from '@angular/core';
import { FormControl } from '@angular/forms';
import { Observable } from 'rxjs';
import { map, startWith } from 'rxjs/operators';

export class User {
  constructor(public firstname: string, public lastname: string, public selected?: boolean) {
    if (selected === undefined) selected = false;
  }
}

/**
 * @title Multi-select autocomplete
 */
@Component({
  selector: 'multiselect-autocomplete-example',
  templateUrl: 'multiselect-autocomplete-example.html',
  styleUrls: ['multiselect-autocomplete-example.css']
})
export class MultiselectAutocompleteExample implements OnInit {

  userControl = new FormControl();

  users = [
    // List of users...
  ];

  selectedUsers: User[] = new Array<User>();

  filteredUsers: Observable<User[]>;
  lastFilter: string = '';

  ngOnInit() {
    this.filteredUsers = this.userControl.valueChanges.pipe(
      startWith<string | User[]>(''),
      map(value => typeof value === 'string' ? value : this.lastFilter),
      map(filter => this.filter(filter))
    );
  }

  filter(filter: string): User[] {
    // Filtering logic...
  }

  displayFn(value: User[] | string): string | undefined {
    // Display logic...
  }

  optionClicked(event: Event, user: User) {
    // Option clicked logic...
  }

  toggleSelection(user: User) {
    // Toggle selection logic...
  }

}

If you're looking for a recommendation, I would recommend utilizing Ng2-select:

   <ng-select [virtualScroll]="true" #select [items]="items" [multiple]="true" bindLabel="name" placeholder="items..."
          formControlName="myFormCOntrolName">
        </ng-select>

This library is designed with angular material styling. Although the virtualScroll feature may not be extensively documented at this time, it proves to be highly efficient when dealing with large data sets.

If you're looking for a multiple selection option, give Ng2-select a try. You can find it at this link. Feel free to test it out and see if it meets your needs.

When it comes to multiple selection features, finding a one-size-fits-all solution is often challenging.