I added some custom taxonomy to a CPT with:
register_taxonomy( \'sport\', \'activity\', [
        \'label\'     => \'Sport\',
        \'rewrite\'   => [ \'slug\' => \'sport\'],
        \'hierarchical\' => true
    ]);
and this works fine. The taxonomy also shows up in the admin menu, as a subpage for activity.
Then I wanted to do the same for the users:
    register_taxonomy( \'team\', \'user\', [
        \'label\'     => \'Team\',
        \'rewrite\'   => [ \'slug\' => \'team\'],
        \'hierarchical\' => true
    ]);
However this did not work for me, the taxonomy did not show up in the admin menu.
After some research, I could make it appear with this code
function add_user_tax_menu() {
    $tax = get_taxonomy( \'team\' );
    add_users_page(
        esc_attr( $tax->labels->menu_name ),
        esc_attr( $tax->labels->menu_name ),
        $tax->cap->manage_terms,
        \'edit-tags.php?taxonomy=\' . $tax->name
    );
}
add_action(\'admin_menu\', \'add_user_tax_menu\');
But it still does not work properly. For example if click on the link in the count column, I end up in the posts sections, with no posts listed.
I guess I have to somehow tell WP that the type is user and not post, but I cannot figure out how.
I also tried using \'edit-tags.php?taxonomy=\' . $tax->name . \'&post_type=user\' instead, but that didn\'t work either (maybe because user isn\'t a post type?).
Update
With the help of the answer posted by @saqib-ali and the tutorial mentioned in the comment, I got somewhat closer to to a solution. However, I still cannot see which users are assigned to a team. When I click on the link in the Count column (see screenshot) I end up back in the posts section of the admin panel.

The link points to
.../wp-admin/edit.php?team=team-a
My guess is, that it needs to be changed to
.../wp-admin/users.php?team=team-a
according to the mentioned tutorial, this might be done with the manage_circle_custom_column hook. But I could not find a hook like that in the WP doc (only manage_posts_custom_column). So maybe that hook doesn\'t exist (anymore)?
And then I would probably also need to add a filter hook that filters users by the taxonomy in the query parameter. Similar to how it works for the role
.../wp-admin/users.php?role=administrator 
I couldn\'t yet find the appropriate hook for either task.