IMPORTANT: If your Salesforce org is configured to use/not use these picklists, you will also need to activate/disable their usage in Magento via Salesforce configuration
Salesforce module provides you with the ability to enable "State and Country Picklists" option. It changes the country and state fields in Salesforce to leverage "drop down" form fields
Case 1: Disabled State and Country Picklists in Magento and Salesforce
Go to Magento Admin panel
Click Salesforce (on left side bar) - General Configuration - Advanced (tab)
Set the "State and Country Picklists" option to "Disable"
Click Save Config
The result in Salesforce
Case 2: Enabled "State and Country Picklists" option in Magento & Salesforce
Go to Magento Admin panel
Click Salesforce (on left side bar) - General Configuration - Advanced (tab)
Set "State and Country Picklists" option to "Enable" and Save Config
The result in Salesforce
Possible Errors and Issues
Possible error when Salesforce and Magento “State and Country Picklists“ configuration is mismatched
Country and State fields are empty in Salesforce Order page after synchronization. In case when “State and Country Picklists“ option is enabled for Magento, but disabled for Salesforce
Order is not synchronized. Error in “From Magento queue“ appears. In case when “State and Country Picklists“ option is enabled for Salesforce but disabled for Magento
Go to Magento Admin panel - Salesforce - Queues - From Magento
There's a problem with this country, even though it may appear correct. Please select a country/territory from the list of valid countries.: Billing Country, fields [BillingCountry] There's a problem with this country, even though it may appear correct. Please select a country/territory from the list of valid countries.: Shipping Country, fields [ShippingCountry]