I do indeed have the "Allow Multiple Values" box checked.
I've been in contact with Tableau customer support since I posted here. The link issue I described appears to be a bug with client side rendering, which can be confirmed if adding the ?:render=false URL parameter provides the proper behavior. The workaround for the time being is to disable client side rendering with tabadmin.
Thank you for your response!
I am seeing the same behavior. I am not using <FilterValues()> but the concept and results are the same. Works in desktop but seems to be disabled in server. Adding ?render:=false works for me as well.