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It makes sense that the desired location would be what the option refers to, but you’re really choosing the desired location in the 3rd dropdown of the rule. That’s demonstrated much clearer when you choose the Page Template in dropdown 1, and all of the page templates appear in dropdown 3.
Dropdown 1 = Group of potential desired locations
Dropdown 2 = Equals/not equals (irrelevant in my example)
Dropdown 3 = Desired location
It seems to be set up like that for everything in dropdown 1, but Taxonomy and Taxonomy Term are just displaying the wrong stuff. Anyway it’s not a big deal, but I thought I’d throw my observation out there because taxonomies are arguably the most confusing thing to wrap your head around as a WordPress newbie and having this (maybe) naming mixup could fluster some people.
PS. I’m also not sure why the final optgroup “Forms” is the most suitable place for Taxonomy Term.
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