I’m not sure why your front end form does not display when you set it to show on a specific page. I just tested this and it’s working for me. The only thing I can think of is that your page template does not have the acf_form() function call on it. Please check to make sure that all the needed code is included in your page template.
The conditional logic works on the back end because the standard taxonomy meta box is there. Your field group is being displayed because a term is selected there and not because the term is selected in the “Taxonomy Field”. Conditional logic does not work across field groups and a term for the post or page is not set by making a choice in a taxonomy field. In order for the term of the post to be set you will need to save the post on the front end, after that the post will have a term selected.
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