Should dropdowns hug its contents or should they be fixed?

When creating a dropdown filter, you can control the size of the dropdown by the size of the placeholder, therefore its inicial width.

When the user selects an option, should I refresh the dropdown width to accommodate the text option or should I maintain its initial width and elipse the overflown text?

Visually I prefer the dropdown hugging its text/placeholder, but the drawback is that long options will mess up the layout after the selected option. On the other hand, if I set a minimum and maximum width, it seems that I'm wasting too much space.

I'd be happy to also hear any opinion about steppers and text input sizes..