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I have a SharePoint online list that has a lookup column with multiple values enabled.

I am not able to find the official upper threshold value of the number of items I can select in the lookup column?

I read in few blogs that it is 12, but I just entered 20+ values and it worked fine

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12 was probably refering to a maximum recommended number of lookup columns in a list. It's a little different from the number of items you can select in a multilookup column.

The number of items you can select in a multi-lookup column is dynamic.

From Column limits:

The sum of all columns in a SharePoint list cannot exceed 8,000 bytes.

As you can imagine, 8KB is not a lot of data. So you can probably get away with adding 200-300 items in a multilookup field. The maximum I was able to add was ~520-540 items.

I should warn you that adding this many lookup items is going to be really bad for performance if you are going to show all these items in a SharePoint List view. As a workaround, you can just hide these lookup columns from a list. As long as you stick to 5-15 items in a lookup column, you should be fine.

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12 is the limit for how many lookup columns (and also people and managed metadata column) you can have in a list view. It is not the supported limit for the number of column values.

There is no specific writing in official documents, but according to another post, the limit for lookup column value is the same as list view threshold 5000:

Limit to the amount of values you can have in a lookup field?

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