How to find top 3 from each category using Excel dynamic formula?

One possibility, using the same basic concept of my INSTANCENUM function:

=LET(
   arr, SORT(A2:B20, {1,2}, {1,-1}),
   key, TAKE(arr,, 1),
   FILTER(arr, 4 > SCAN(0, key = DROP(VSTACK("", key), -1), LAMBDA(a,v, 1 + a * v)))
)

Or, as a curried LAMBDA function:

=LAMBDA(arr,FILTER(arr,4>LAMBDA(key,SCAN(0,key=DROP(VSTACK("",key),-1),LAMBDA(a,v,1+a*v)))(TAKE(arr,,1))))(SORT(A2:B20,{1,2},{1,-1}))

p.s. I think everyone is currently having issues with file attachments being removed from their posts.