Terms & Taxonomy query filter allows you to filter the Post Query based on the terms & taxonomy.
Type - Select Term
In this specific type, you can select the desired taxonomy for your post.
Now, underneath that, you can include or exclude the terms of the selected taxonomy.
For include, there are two include operator "and" and "in"
This operator helps when you have selected multiple terms for your taxonomy in the include option.
Include Operator - AND:
If you choose the operator "and" then only those posts will render which satisfy to have all the terms in the selected taxonomy.
For example, for the above screenshot, only those posts which have both the terms selected will appear.
Include Operator - IN:
If you choose the operator "in", then all the posts with the selected terms will render in the query.
You can also exclude any term for the selected taxonomy.
Dynamic Current Post Terms
Enabling this toggle will hide the include and exclude options for the terms of the selected taxonomy.
This will filter the results by taxonomy terms that are associated with the current post
Type - Post Meta Term
In this specific type, you can select the terms from the custom post meta field. The query will then return the results based on the selected post-term meta field.
Choose the Taxonomy which is available for your select post type
Assign the Custom Meta field
You can create an ACF field of type Taxonomy. Then, you can assign that in the second step.
Type - Dynamic String
In this type, you use the Post-term string field to filter the terms out of your categories for your post grid.