Deploy vocabulary with default terms

module_name.install.php

<?php

/**
 * @file
 * Contains install, update and uninstall functions for the User module.
 */

use Drupal\Core\Config\FileStorage;
use Drupal\Core\Site\Settings;
use Drupal\field\Entity\FieldConfig;
use Drupal\field\Entity\FieldStorageConfig;

/**
 * Create a field if it doesn't exist.
 *
 * @throws \Drupal\Core\Entity\EntityStorageException
 */
function deploy_helper_ensure_field(string $entity_type, string $bundle, string $field) {
  $config_directory = new FileStorage(Settings::get('config_sync_directory'));

  $field_storage_name = 'field.storage.' . $entity_type . '.' . $field;
  $config_record = $config_directory->read($field_storage_name);
  if (!FieldStorageConfig::loadByName($config_record['entity_type'], $config_record['field_name'])) {
    FieldStorageConfig::create($config_record)->save();
  }

  $field_config_name = 'field.field.' . $entity_type . '.' . $bundle . '.' . $field;
  $config_record = $config_directory->read($field_config_name);
  if (!FieldConfig::loadByName($config_record['entity_type'], $config_record['bundle'], $config_record['field_name'])) {
    FieldConfig::create($config_record)->save();
  }
}

/**
 * Create vocabulary from configurations.
 */
function deploy_helper_ensure_vocabulary($config_name) {
  $config_path = Settings::get('config_sync_directory');
  $source = new FileStorage($config_path);
  $config_storage = Drupal::service('config.storage');
  $config_storage->write($config_name, $source->read($config_name));
}

/**
 * Implements hook_update_N().
 */
function pfncsmpfcomau_user_update_9309() {
  try {
    deploy_helper_ensure_vocabulary('taxonomy.vocabulary.australia_states');
    deploy_helper_ensure_vocabulary('taxonomy.vocabulary.new_zealand_states');

    deploy_helper_ensure_field('taxonomy_term', 'australia_states', 'field_state_code');
    deploy_helper_ensure_field('taxonomy_term', 'new_zealand_states', 'field_state_code');

    $term_storage = Drupal::entityTypeManager()->getStorage('taxonomy_term');
    $states = [
      'australia_states' => [
        'NSW' => 'New South Wales',
        'QLD' => 'Queensland',
        'SA' => 'South Australia',
        'TAS' => 'Tasmania',
        'VIC' => 'Victoria',
        'WA' => 'Western Australia',
        'ACT' => 'Australian Capital Territory',
        'NT' => 'Northern Territory',
      ],
      'new_zealand_states' => [
        'NZ-NTL' => 'Northland',
        'NZ-AUK' => 'Auckland',
        'NZ-WKO' => 'Waikato',
        'NZ-BOP' => 'Bay of Plenty',
        'NZ-GIS' => 'Gisborne',
        'NZ-HKB' => "Hawke's Bay",
        'NZ-TKI' => 'Taranaki',
        'NZ-MWT' => 'Manawatū-Whanganui',
        'NZ-WGN' => 'Wellington',
        'NZ-TAS' => 'Tasman',
        'NZ-NSN' => 'Nelson',
        'NZ-MBH' => 'Marlborough',
        'NZ-WTC' => 'West Coast',
        'NZ-CAN' => 'Canterbury',
        'NZ-OTA' => 'Otago',
        'NZ-STL' => 'Southland',
      ],
    ];

    foreach ($states as $vocabulary_id => $country_states) {
      foreach ($country_states as $code => $name) {
        $term_storage->create([
          'vid' => $vocabulary_id,
          'name' => $name,
          'field_state_code' => $code,
        ])->save();
      }
    }
  }
  catch (Exception $e) {
    watchdog_exception('deploy_state_terms', $e);
  }
}

Drupal. You can use the above script if you need to deploy vocabulary with default terms. The script imports configurations and executes code after the config import to create the default terms.