Here is what works better.
Prioritize search terms and categories over product images on mobile. Guide people to results pages rather than trying to show products in the dropdown.
Why? Because someone typing on mobile wants to get to products fast. They are not browsing the dropdown. They want to type, tap, and see results.
The autocomplete should help them articulate their query. Not distract them with tiny product images they can barely see.
Test your mobile search right now. Open your phone. Tap the search bar. Look at what is visible above the keyboard.
If you cannot see anything useful without scrolling, you have a mobile keyboard problem.
And if you need any help, just let me know.