Posts in loop displaying all taxonomies

You are a victim of WordPress’ great naming scheme. You don’t need get_terms(), but get_the_terms(). Note the the? That makes a huge difference.

• get_terms( $taxonomies, $args="" ): Retrieve the terms in a given taxonomy or list of taxonomies. All terms.

• get_the_terms( $id, $taxonomy ): Retrieve the terms of the taxonomy that are attached to the post. Only the terms for that post.

Now try something like this in a loop:

$terms = get_the_terms( get_the_ID(), 'category' );
print '<pre>' 
    . htmlspecialchars( 
        print_r( $terms, TRUE ), 
        ENT_QUOTES, 
        'utf-8', 
        FALSE 
    ) 
    . '</pre>';

Sample result:

Array
(
    [4] => stdClass Object
        (
            [term_id] => 4
            [name] => aciform
            [slug] => aciform
            [term_group] => 0
            [term_taxonomy_id] => 4
            [taxonomy] => category
            Posts in loop displaying all taxonomies => 
            [parent] => 0
            [count] => 2
            [object_id] => 188
            [cat_ID] => 4
            [category_count] => 2
            [category_description] => 
            [cat_name] => aciform
            [category_nicename] => aciform
            [category_parent] => 0
        )

    [10] => stdClass Object
        (
            [term_id] => 10
            [name] => Cat A
            [slug] => cat-a
            [term_group] => 0
            [term_taxonomy_id] => 11
            [taxonomy] => category
            Posts in loop displaying all taxonomies => 
            [parent] => 0
            [count] => 2
            [object_id] => 188
            [cat_ID] => 10
            [category_count] => 2
            [category_description] => 
            [cat_name] => Cat A
            [category_nicename] => cat-a
            [category_parent] => 0
        )
)

Now you can iterate over that array and use esc_html( $term->name ).