This won’t work on the front end. In the back end when you select a category in the standard WP category box this triggers WP to run AJAX to see if there are more field groups that need to be displayed. This will not work on the front end because ACF does not update the taxonomy field until you save the post. You would basically need to create a location rule that’s based on the value of an ACF field and that functionality does not exist.
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