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I found the answer from a reply to another post. The URL var name was the same as the Filter name so I guess that creates a conflict. I changed it to something unique and the OR filter logic is now working correctly.
For anyone else experiencing this, I’ll elaborate:
Custom Taxonomy Name: Location
Filter Name: Location
URL Var Name: location
Since you can’t edit the URL var name on a published filter, I went to Settings –> URL Var Names and changed location to origin.