Since all the below components looks similar, what is the difference between Pills, Chips and Tags/Tokens. Since, am confused where/when to use these components.
The short answer: they have different shapes.
The (only slightly) longer answer: The tags in your question are not the UI device shown but the data they contain - in other words they could be described as 'Pills' or 'Chips' representing tags used to label data.
There is only difference of representation in between pills or chips otherwise both can be used for same purpose and yes, The "tags" are data which is cotained by chips or pills not the UI.