You need to change this line
<div class="mt-2 w-64 rounded-md shadow-lg bg-white ring-1 ring-black ring-opacity-5">
to be
<div class="mt-2 container rounded-md shadow-lg bg-white ring-1 ring-black ring-opacity-5">
this will allow the dropdown to have labels wider than the 64 pixels width
You need to change this line
<div class="mt-2 w-64 rounded-md shadow-lg bg-white ring-1 ring-black ring-opacity-5">
to be<div class="mt-2 container rounded-md shadow-lg bg-white ring-1 ring-black ring-opacity-5">
this will allow the dropdown to have labels wider than the 64 pixels width