You will need to import the tailwind form plugin.

1. Install @tailwindcss/forms with npm: npm install -D @tailwindcss/forms
2. Import the plugin in your resources/css/app.css with the following:

@import 'tailwindcss';
@plugin '@tailwindcss/forms'; /* Add this */

@source '../../vendor/laravel/framework/src/Illuminate/Pagination/resources/views/*.blade.php';
@source '../../storage/framework/views/*.php';
@source '../**/*.blade.php';
@source '../**/*.js';

@theme {
    --font-sans: 'Instrument Sans', ui-sans-serif, system-ui, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji',
        'Segoe UI Symbol', 'Noto Color Emoji';
}

And then the select dropdown should be rendering properly.