This is pretty much correct, though I feel there's some finer points depending on the number of options (5? 10? 50?) and the expected number of values chosen (2? 4? 10?).
Tag-style multiselects are fairly common (see https://react-select.com/home for an example). These are good where the number of values a user is expected to have selected is small (less than five imo) but the number of options is large enough to make checkboxes impractical. If you're expecting a higher number of things to be selected, you could have the option list stay open after an option is clicked, so they user doesn't have to reopen it each time they want to add an option (and, in fact, the "Animation" example does precisely that).
Checkboxes are a good choice for a small number of options: https://m3.material.io/components/chips/overview . I'd say past a dozen options though this starts to become unwieldy.
Tag-style multiselects are fairly common (see https://react-select.com/home for an example). These are good where the number of values a user is expected to have selected is small (less than five imo) but the number of options is large enough to make checkboxes impractical. If you're expecting a higher number of things to be selected, you could have the option list stay open after an option is clicked, so they user doesn't have to reopen it each time they want to add an option (and, in fact, the "Animation" example does precisely that).
Two column designs ( https://crlcu.github.io/multiselect/examples/search.html ) have mostly fallen out of favor, though I feel they still have their uses for larger lists with large numbers of selected values.