If you look at console when you change user_name field, you can see materialUI warning in the console which says:
Material-UI: A component is changing the uncontrolled value state of Autocomplete to be controlled.
it's reason is that your user_country's value by default is undefined and material consider this field as uncontrolled field, it means material will take the control of user_country value. To solve the problem you have two solutions:
1- Defining your form by defaultValues options like this:
const methods = useForm({
defaultValues: {
user_name: null,
user_country: null
}
});
2- Sending null as value to AutoComplete when it doesn't have any value, like this:
<Controller
control={control}
name={`user_country`}
render={({ field: { onChange, value } }) => (
<Autocomplete
id="country-select-demo"
options={countries}
onChange={(event, item) => {
onChange(item);
}}
value={value || null}
...
/>
)}
/>
Here You can see your form which updates user_country whenever you change user_name field.