You are running into two issues here, both of which can easily be fixed.
-
Select2 4.0.0 no longer supports the
queryoption in the slimmed down, standard build. This must be included in the full build (select2.full.js) as it is handled through a backwards compatibility module. -
You are using Placecomplete and it depends on an older version of Select2. It looks like Select2 3.5.2+ can work, but I can tell from the options that it is using, it cannot work with Select2 4.0.0. There is an open ticket about this for Placecomplete.