I have the same issue/question. My custom taxonomy is called “type”.
Here are some links to demonstrate what I believe ZoonerZ was attempting to illustrate with the screenshot.
Regular taxonomy, “tag” page, (in this link posts tagged with “vanilla”) shows the title “TAGGED: VANILLA” as it should.
https://staging.milesfamilyrecipes.com/tag/vanilla/
But the custom taxonomy, “type” which I have in place for my custom post type “recipes” (in this link recipes with of the type “desserts”) show the title of the first post, rather than “Type: Desserts” as expected.
https://staging.milesfamilyrecipes.com/recipe/type/desserts
