According to 2510.04756, in the context of CTMRG:
Then, we do singular value decomposition (SVD) as in Fig. 7(C). The diagonal $S$ has $χ_0$ singular values sorted in the non-increasing order: $S_1 ≥ S_2 ≥ · · · ≥ S_{χ_0}$ . Instead of simply truncating $S$ to a predefined number of singular values, we noticed that $S$ has a multiplet structure that needs to be dealt with carefully when it comes to the truncation. To do this, we initially truncate S to $χ_i$ such that $χ_i$ is the largest number satisfying $S_{χ_i} / S_1 ≥ ϵ_C$ and $χ_i ≤ χ$. Next, we find the largest $χ_f$ such that $χ_f ≥ χ_i$ and $1 − S_{χf} /S_{χi} < r_m$. By including a complete multiplet during truncation, we improve the stability of CTMRG.
The idea is: Sometimes a hard truncrank(χ) cuts in the middle of a degenerate part of the singular value spectrum. It benefits to provide a truncation strategy that automatically increases χ (when these degenerate singular values are not too small) so that the entire degenerate part is kept.