Content editor cannot view unpublished taxonomy terms when editing a node
You don't need to use permissions, just adjust the field's reference method.
Add a new entity reference display view that returns all taxonomy of the given type with the published = 1 filter removed (so it display all terms regardless of publish status).
Edit your entity reference taxonomy field for the relevant node type. Under the Reference Type, adjust Reference method to Views: Filter by an entity reference view, then select your newly created view.
After saving the field settings, the node form should display all taxonomy regardless of user permissions on viewing unpublished content.