I have bought the Palo Alto Theme and added the filters using filter mode 'By group'. The filters are working as long as any one is selected. As multiple checkboxes or colors are selected the results are in accordance to the 'AND' condition i.e. the products having to all the selected filters are displayed, whereas the filter should display all the products that have either of the filtered values.
Any help would be greatly appreciated!
If you want a dynamic product filtering and multiple filter selection of the same type, you can try a Shopify app. There are some apps that can help you achieve that requirement:
I recommend you could give Ultimate Filter and Search a try since it can show the matching product with filter selection. Take a look at the demo store https://usf-vertical.myshopify.com/collections/men-shirts If users select color Red and White, it will display the respective product variant image, even though some products have the main image in Blue or Black.