Jquery ui autocomplete: Having trouble with clicking element in autosuggest list and populating input field.

Hello, I'm having trouble with clicking a list element in autosuggest list and populating input field. It was working without the introduction to the top part (Highlighting) but i'm just not seeing what the issue is with that addition. Everything else is working perfectly.

(function( $ ) {
    // Custom autocomplete instance.
    $.widget( "app.autocomplete", $.ui.autocomplete, {

        // Which class get's applied to matched text in the menu items.
        options: {
            highlightClass: "ui-state-highlight"
        },

        _renderItem: function( ul, item ) {

            // Replace the matched text with a custom span. This
            // span uses the class found in the "highlightClass" option.
            var re = new RegExp( "(" + this.term + ")", "gi" ),
                cls = this.options.highlightClass,
                template = "<span class='" + cls + "'>$1</span>",
                label = item.label.replace( re, template ),
                $li = $( "<li/>" ).appendTo( ul );

            // Create and return the custom menu item content.
            $( "<a/>" ).attr( "href", "#" )
                       .html( label )
                       .appendTo( $li );

            return $li;

        }

    });

    // Create autocomplete instances.
    $(function() {

        $('.input-search').autocomplete({
            source: function(query, response) {
                $.ajax({
                    url: "app/func/func_search.cfc?method=search&returnformat=json",
                    dataType: "json",
                    data: {
                        searchPhrase: query.term
                    },
                    success: function(result) {
                    response(result);
                    },
                    select: function( event, ui ) {
                    log( ui.item ?
                    "Selected: " + ui.item.value + " aka " + ui.item.id :
                    "Nothing selected, input was " + this.value );
                    }
                });
            }
        });

      });

})( jQuery );

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