Is there a way to apply a tag based on a contact field being changed to a certain option?
Ex. Phone type 1 gets changed to Home = applies tag to remove from texting sequence
Not on specific fields. The api and a webhook can be used to automate and check for that but then you’d have to store the previous value just to check against it to see if the field had changed.
What if the field was not going to be dynamic and not change at all.
Could you implement a script that would check contacts every day and if they have a field type that equals X then it applies Y tag?
Yes, that would be fairly easy to do. So if you know specifically the value to look for then code could query on that value on that specific field and then raise a tag BUT it would still have to be tracked in some way because code would not know which ones were old or new changes. That can be done with a second custom field or another tag though. If the second field or tag exists then it’s old and that field wouldn’t need to trigger anything but if they are not then that field would be viewed as new changes and therefor a tag could be raised at that point.
This could be done on a schedule or in realtime using webhooks 
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So basically the second custom field is used so the script isn’t looking at all contacts only those it hasn’t looked at already?
Correct.