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function render_block_core_term_template( $attributes, $content, $block ) {
	if ( ! isset( $block->context ) || empty( $block->context['termQuery'] ) ) {
		return '';
	}

	$query = $block->context['termQuery'];

	$query_args = array(
		'number'     => $query['perPage'],
		'order'      => $query['order'],
		'orderby'    => $query['orderBy'],
		'hide_empty' => $query['hideEmpty'],
	);

	$inherit_query = isset( $query['inherit'] )
		&& $query['inherit']
		&& ( is_tax() || is_category() || is_tag() );

	if ( $inherit_query ) {
		// Get the current term and taxonomy from the queried object.
		$queried_object = get_queried_object();

		// For hierarchical taxonomies, show children of the current term.
		// For non-hierarchical taxonomies, show all terms (don't set parent).
		if ( is_taxonomy_hierarchical( $queried_object->taxonomy ) ) {
			// If showNested is true, use child_of to include nested terms.
			// Otherwise, use parent to show only direct children.
			if ( ! empty( $query['showNested'] ) ) {
				$query_args['child_of'] = $queried_object->term_id;
			} else {
				$query_args['parent'] = $queried_object->term_id;
			}
		}
		$query_args['taxonomy'] = $queried_object->taxonomy;
	} else {
		// If not inheriting set `taxonomy` from the block attribute.
		$query_args['taxonomy'] = $query['taxonomy'];

		// If we are including specific terms we ignore `showNested` argument.
		if ( ! empty( $query['include'] ) ) {
			$query_args['include'] = array_unique( array_map( 'intval', $query['include'] ) );
			$query_args['orderby'] = 'include';
			$query_args['order']   = 'asc';
		} elseif ( empty( $query['showNested'] ) ) {
			// We set parent only when inheriting from the taxonomy archive context or not
			// showing nested terms, otherwise nested terms are not displayed.
			$query_args['parent'] = 0;
		}
	}

	$terms_query = new WP_Term_Query( $query_args );
	$terms       = $terms_query->get_terms();

	if ( ! $terms || is_wp_error( $terms ) ) {
		return '';
	}

	$content = '';
	foreach ( $terms as $term ) {
		// Get an instance of the current Term Template block.
		$block_instance = $block->parsed_block;

		// Set the block name to one that does not correspond to an existing registered block.
		// This ensures that for the inner instances of the Term Template block, we do not render any block supports.
		$block_instance['blockName'] = 'core/null';

		$term_id  = $term->term_id;
		$taxonomy = $term->taxonomy;

		$filter_block_context = static function ( $context ) use ( $term_id, $taxonomy ) {
			$context['termId']   = $term_id;
			$context['taxonomy'] = $taxonomy;
			return $context;
		};

		// Use an early priority to so that other 'render_block_context' filters have access to the values.
		add_filter( 'render_block_context', $filter_block_context, 1 );

		// Render the inner blocks of the Term Template block with `dynamic` set to `false` to prevent calling
		// `render_callback` and ensure that no wrapper markup is included.
		$block_content = ( new WP_Block( $block_instance ) )->render( array( 'dynamic' => false ) );

		remove_filter( 'render_block_context', $filter_block_context, 1 );

		// Wrap the render inner blocks in a `li` element with the appropriate term classes.
		$term_classes = "wp-block-term term-{$term->term_id} {$term->taxonomy} taxonomy-{$term->taxonomy}";

		$content .= '<li class="' . esc_attr( $term_classes ) . '">' . $block_content . '</li>';
	}

	$classnames = '';

	if ( isset( $attributes['style']['elements']['link']['color']['text'] ) ) {
		$classnames .= 'has-link-color';
	}

	$wrapper_attributes = get_block_wrapper_attributes( array( 'class' => trim( $classnames ) ) );

	return sprintf(
		'<ul %s>%s</ul>',
		$wrapper_attributes,
		$content
	);
}