I got it working, in my form component update/2 I send an update to live select component send_update(LiveSelect.Component, id: "live_select_component_id", value: current_tags). The current tags are defined and passed to my form component that utilizes live select component. This way, live select component value does not need to be set and current tags can be removed, or new tags can be searched and added.
I would expect that setting value in live_select would perform the same way I am doing through an explicit send_update but it does not, as it seems the value set always overrides any change in the selection.
