For some reason it's not working. It'll clear whatever value is present in the dropdown but the rest of the msg.options are still there when you click back on the dropdown.
The instructions also say to pass a Boolean true payload under msg.resetSearch which doesn't do anything.
Dang it. I figured it out. Sending an empty array to msg.payload clears the bar and sending an empty array to the same dropdown as msg.options clears the list of items sent in that options payload.