This tutorial provides the steps to create a wp_query function to create a custom post list design with custom taxonomy terms showing categories in any theme in WordPress.
Preview:

The design markup can be changed and other custom fields can be added to the markup.
A. This design is using the post link under we have Post title and category names. Add the required code in child-theme/functions.php


Prerequisite:
- Create a custom post type and custom taxonomy. You can use Pods or the Custom Post Type UI plugin.
TYPE 1
1. Default Post Type

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