How to use views taxonomy contextual filters with menu tabs?
I managed to resolve the above problem with the following configuration:

I created the contextual filter on taxonomy term field and in the filter settings section When the filter value is NOT in the URL I selected Provide default value and Raw value from URL with Path Component 2 and the option Use path alias checked.

In the filter settings section When the filter value IS in the URL or a default is provided I selected the appropriate vocabulary and for Filter value type Term name converted to term ID.