Dropdown inside search field (material design)

I have a search bar with the option to select what entity I am searching for. I am using material search behavior which expands the search field when the icon is clicked, so I used the dropdown to be shown with expansion.

Do you think this behavior is confusing? If so, what is the best solution to clarify this?

The image is showing before (1) and after (2) the expansion:

.

Thanks