This is the code that worked for me

/**
 * Assign "Sponsored Posts" content type if post is marked as sticky.
 */
function assign_sponsored_term_if_sticky( $post_id, $form_id, $post_data ) {
	// Check if post is sticky.
	if ( ! is_sticky( $post_id ) ) {
		return;
	}

	// Get the "Sponsored Posts" term in 'content_type' taxonomy.
	$term = get_term_by( 'name', 'Sponsored Posts', 'content_type' );
	if ( ! $term || is_wp_error( $term ) ) {
		return;
	}

	// Append the term to the post without removing other terms.
	wp_set_post_terms( $post_id, array( $term->term_id ), 'content_type', true );
}
add_action( 'bblpro_post_submitted', 'assign_sponsored_term_if_sticky', 20, 3 );
add_action( 'bblpro_post_updated', 'assign_sponsored_term_if_sticky', 20, 3 );  

I dont know why this code below did not work

 /**
 * Reassign "Sponsored Posts" term when a paid post is submitted or updated.
 */
function assign_sponsored_term_if_paid( $post_id, $form_id, $post_data ) {
	// Check if the post is paid.
	if ( ! bbl_ppp_get_post_order_id( $post_id ) ) {
		return;
	}

	// Get the "Sponsored Posts" term.
	$term = get_term_by( 'name', 'Sponsored Posts', 'content_type' );
	if ( ! $term ) {
		return;
	}

	// Append the term without removing existing ones.
	wp_set_post_terms( $post_id, array( $term->term_id ), 'content_type', true );
}
add_action( 'bblpro_post_submitted', 'assign_sponsored_term_if_paid', 20, 3 );
add_action( 'bblpro_post_updated', 'assign_sponsored_term_if_paid', 20, 3 );
 

1. I created a custom taxonomy called CONTENT TYPE where by (Sponsored Posts) is an option.

2. I now disabled the (Sponsored Posts) option in the buddyblog settings because I don’t want users to be select this option when posting.

3. I only want the (Sponsored Posts) option to be automatically assigned only to featured paid post using the code I shared above. IM USING PAY PER POST ADDON

THE PROBLEM

1. The problem now is with the retention/removal of the (Sponsored Posts) term to published paid post when users try to edit and republish a paid post.

2. If I edit a paid post the (Sponsored Posts) term is removed after clicking the (UPDATE) button.

3. When editing a paid post the term (Sponsored Posts) should not be removed as the term was initially assigned using the code I provided

Thanks Brajesh

Your code worked perfectly.

Thanks for the updated code

I am using the profile privacy plugin and while using your updated code I am receiving the 404 error correctly but the url is in this format https://site.com/members/mike/visibility-protected/.

I dont think it’s cool to show the (visibility-protected) slug for admins since it reveals that the admin account is available but just hidden