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We have a term set named Customer and we have a managed metadata site column named "mmcustomer" which allow multiple selection linked to the customer term set:-

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and inside our document library which contains around 8,000 documents in the root folder >> i defined the following filter inside the list view to filter based on the non-indexed column :-

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now there is at-least 6,000 documents with "mmcusomters" = "CustomerC".. so i thought that the list view will raise a threshold error.. but till now i am able to view the list view without any issues.. so has the threshold inside SharePoint online improved ? to be more than 5000 ? or what is happening ? as the "mmcustomers" site column can not be indexed since it allow multiple selection..

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As per my understanding List View threshold is still applicable to Classic View of SharePoint.

But according to this link, it will work till 20000 items in SharePoint Modern View for List.

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