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I have a termset where multiple users need to be able to manage terms, basically they will add, update custom properties themselves.

The 'Owner' property in termset specifies that you can set a primary user or group, but I could not set either SharePoint or AD group here.

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Can anyone help me to understand how this can be fixed?

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If you try to enter multiple people in the owners picker you will get this error message:

You are only allowed to enter one item.

To add multiple people as owners, you can create a SharePoint group and add people to that group and then add that group as the owner of the term set. Put the name of the group properly and try resolving.

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From your description, when you grant SharePoint group or AD group as term set owner , you got "No exact match was found" error.

Do you grant term set owner from site level or managed metadata service application level?

Can you find SharePoint group or AD group in other people picker column?

Check whether you can use Browser to find SharePoint group or AD group?

enter image description here

Users in any domain in the trusted forest receive a "No exact match was found" People Picker error message for your reference:

https://support.microsoft.com/en-us/help/2874332/users-in-any-domain-in-the-trusted-forest-receive-a-no-exact-match-was

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