Looks like #57049 has led to the pattern categories UI to suggest these are "tags", though they are categories. Perhaps this panel should be updated to use the existing categories UI anyhow; instead of the FormFieldToken, which is used for tags on posts.

As an aside, I think it'd be fine to just have "Categories" as the panel title, as we do the same on the post editor (and the UI already suggests this is a custom post type via the tab).

cc @youknowriad