Resolved
Reported for: Toolset Views 2.0
Resolved in: Toolset Views 2.1
On Views listing taxonomy terms, there used to be a mode Filter by terms set by the current post. As part of the Toolset Views 2.0 upgrade, we made some changes to such filters, including this one, and built a bridge between the old settings and the new ones.
As a result, the bridge in this case was not built correclt, so the filter mode appears changed and the filter itself fails to get applied when the Taxonomy View is used as part of a loop of a View listing posts.
This issue will be fixed on the next release of Toolset Views. On the meantime, this patch can be applied, by just replacing the existing files with the new ones with the same name, located in wp-views/inc/filters/wpv-filter-taxonomy-term.php, wp-views/embedded/inc/wpv-filter-taxonomy-embedded.php and wp-views/embedded/inc/wpv-summary-embedded.php