The example you show above does make a reference to PhoneFactor-InputOrVerify but the definition of it is missing in the same xml file. When you upload that file as-is , it gives an error "PhoneFactor-InputOrVerify" definition is missing.
It was after so much research that I was able to figure out that above Git Sample takes its base foundation from another Git Sample which is :
https://github.com/Azure-Samples/active-directory-b2c-custom-policy-starterpack/tree/main/SocialAndLocalAccountsWithMfa
So basically, we have to implement the base foundation first and then refer conditional access policies git sample. I guess the documentation / samples could be explained all of these in some simple steps so that it's not too confusing. For now, the simple answer to my above question is the combination of below 2 documents:
https://github.com/azure-ad-b2c/samples/tree/master/policies/conditional-access