Large taxonomy (2000+ terms), causing WordPress to hang

This is probably because your taxonomy is hierarchical, and the default meta box for such taxonomies is similar to the category box – which displays all terms as input elements. So the browser lag for thousands of elements within a page is expected in this case.

If you can’t make your taxonomy non-hierarchical, try removing the default meta box and create your own, in which you display only the most used terms, a single input field with autocomplete or something similar

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