Is it not possible to do a taxonomy loop, and then have a post loop inside of that (but the post loop is filtered by a second taxonomy? Example:
<Loop type=taxonomy_term taxonomy=location_state>
<h2><Field title /></h2>
<Loop type=store taxonomy=rewards terms="{Field id}">
<a href="{Field url}"><Field title /></a>
</Loop>
</Loop>
This should output the titles of each taxonomy term with the posts inside that term. But then it should only output posts that also have a taxonomy of rewards. No?
It isn’t outputting any posts at all - only the tax titles