This is a new feature in Hermit, currently available only via the Early Access Program. To use it, you need to subscribe to the Early Access Program in the app.
Each Lite App can be tagged with one or more tags in its Settings. On the main app screen, a row of tags appears at the bottom, below all app icons, where you can select the tag you’d like to browse, and all Lite Apps with a matching tag are shown above.
If you are only seeing Lite Apps that match a tag, then click the left-most button on the tag bar to un-select all current tags. This will show all Lite Apps, irrespective of their tags, on the main app screen.