For a multi-value Tagbox (or multi-value Relationship, multi-value Fieldset), it is used in combination with the Nested Filter.
The Tagbox Filter (Terms Relation Aggregator) is used to aggregate terms using a unique ID as a base, but instead of unclear IDs, it shows the specified translation (Display Pattern) in the Filter. This makes it easier for the user to really understand the Filters value.
The benefit is that IDs are always only used ones. Text e.g. List Item name "Joe Berrymore" may be present multiple times (see Terms Filter), so filtering for Joe Berrymore may bring the wrong results, whereas "Joe Berrymore" has a unique refId. If you want to have a filter for the List "Persons" use the refId of the tags, which avoids any mix-ups with other tags.
This Filter is also used for other document types:
Users: Provide the userId and get the user name.
Permission Sets: Provide the contentPermissionSetId and get the permission set name.
Content: Provide the contentId and get the Content Item name display pattern.
Tagbox: Provide the refId and get the list item name pattern.
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