how to alter entity reference field (taxonomies) field options in hook form alter

Can anyone please let me how to alter entity reference field (taxonomies) field options in hook form alter,

Seems the below code doesn't work.

/**
 * Implements hook_form_alter().
 */
function MY_MODULE_form_alter(&$form, FormStateInterface $form_state, $form_id) {
  if ($form_id == 'node_article_edit_form' || $form_id == 'node_article_add_form') {
    $channel_options = [
      '1' => 'Term1',
      '2' => 'Term2',
      '3' => 'Term3',
      '4' => 'Term4',
      '5' => 'Term5',
    ];

    $form['field_channel'] = [
      '#title' => 'Channels',
      '#description' => 'Select Channel',
      '#type' => 'select',
      '#options' => $channel_options,
    ];
  }

}

For context :

I have a field named as channels in node article which is entity reference to channel taxonomy.

I would like to limit the list of terms visible to current user to the channels to which they are assigned in their user profile.

I am trying to achieve it by altering the node edit form and replacing channels field values from the current user logged in.

Thanks to @Hudri suggestion. I am able to achieve it without code using views module.

I followed the guide from How to Use Entity Reference Views in Drupal 8 - OsTraining and created a contextual filter to filter by current logged in user.

The important thing here is define Configure contextual filter When the filter value is NOT available.