Screen Flow Lookup Component Filters, Limitations and Workaround

To anyone who is looking into this, I hope this may help you. 

The Lookup screen components, as well as record variable lookup fields has limitations in screen flows. Documentation is here

• Dependent lookup filters aren’t enforced for the Lookup component in a flow. Other lookup filters are enforced the same as they are in Lightning Experience record pages. When the flow accesses the Salesforce database, lookup filters are enforced. For example, when the flow executes the Create Records element, the flow fails if the value of the lookup field doesn’t meet the lookup filter requirements.
• Dependent lookup filters aren’t supported.

Consider a business scenario:

1. User has a picklist field, referencing a global picklist.
2. Object record also has a picklist field, referencing the same global picklist.
3. Lookup field on object record has lookup filter, only if the picklist values are equal.

This works fine on flexipages, but not in screen flow lookup components. 

However, if the lookup filter is changed from EQUALS to CONTAINS, then the filter still works. Just note, this is then not supported.