You can see that for major retailers, their ranked URLs look very similar to Shopify's tag-based filter URLs. The filtered tag terms "blue" and "cotton" appear either as a subdirectory or appended in front of the collection/category name "area-rugs".
The tag-based filters also have canonical URLs for these pages. So tag filtering makes ranking easy, especially if you can make some code edits so filtered tags have unified canonicals even for multiple tags (ex., "/blue+cotton" and "/cotton+blue" both point to "/blue+cotton") and dynamically generated H1 tags and descriptions.
Storefront filters, but contrast, produce very long/ugly URLs like below:
To make matters worse, it does not appear any of the filtered results using faceted filters have a canonical URL. The canonical is always just the base collection URL. Therefore, I don't think you'll rank for any filtered collections. The URL is just a bunch of URL parameters/query strings.
We are just diving into storefront filters, so please provide insights you have with SEO advantages of both filter systems. We like the ease of managing the filters using the new storefront filters, but it's all useless if it doesn't play nicely with SEO.