A doosy- Complex logic for filtering - Can you figure it out?

I am using Office Excel 2016

I don't think so you are using FILTER, but Excel 2016 does not have FILTER.
You can check your version in Excel: Click on your account name (at the top) and then click Office user info. It should be 2019, 2021 or 365.

Did you download the example workbook?

But your file is too big and not very manageable. Please provide a sample sheet with a maximum of a few tens of rows, so that you can test it much more easily. I will return such a workbook with a working formula