How can we reset multiple selected values (mui chips) in a React Material-UI Autocomplete field when changing the value in a different field?

Is there a way to clear the mui-chips in Material UI Autocomplete TextField when the value in another field is changed? I have been struggling with clearing the subtype value when the Type value changes. Although I can update the drop-down options based on the Type field's value change, the mui chips remain uncleared.

Click here for Banking Type options

In the screenshot below, you can see my attempt to clear the options and mui-chips for the subtype field. While the options are successfully updated, the mui chips remain unaffected.

Mui chips not resetting after changing Type dropdown value

To reproduce the issue, visit the following codesandbox link: https://codesandbox.io/s/autocomplete-multiple-wkumx

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