fixes #1024

docs/resources/changelog.md

@@ -8,6 +8,10 @@ New versions of Shoelace are released as-needed and generally occur when a criti
 
 ?> During the beta period, these restrictions may be relaxed in the event of a mission-critical bug. 🐛
 
+## Next
+
+- Fixed a bug that prevented `hoist` from working correctly in `<sl-dropdown>` after updating Floating UI [#1024](https://github.com/shoelace-style/shoelace/issues/1024)
+
 ## 2.0.0-beta.84
 
 - 🚨 BREAKING: Removed the `fieldset` property from `<sl-radio-group>` (use CSS parts if you want to keep the border) [#965](https://github.com/shoelace-style/shoelace/issues/965)

src/components/dropdown/dropdown.ts

@@ -409,6 +409,7 @@ export default class SlDropdown extends ShoelaceElement {
         shift
         auto-size="vertical"
         auto-size-padding="10"
+        .autoSizeBoundary=${this.hoist ? document.body : undefined}
         class=${classMap({
           dropdown: true,
           'dropdown--open': this.open