I just noticed after doing all this that I performed this test in SqlServer 2016 - so there could possibly be performance improvements between versions
I would say that the first is the better option based on the following experiment, but note that I am basing this off a relatively small set of test data and the set up I did this with may be overly simplified, but for I think that it demonstrates in theory why the first should be better.
You can repeat this test with your own data using Microsoft Management studio by turning on the Execution plan (See Method 1 of the accepted answer in this post)
Running the two queries with only two terms gives the below execution:

As you can see in the first query, there is 68% of the cost is for scanning the index and 32% for the table function (Contains method). And the second, as there is now two function calls to analyse - the cost of the table function is increased. And here are the timings of the queries.
-- Query 1
(296 row(s) affected)
SQL Server Execution Times:
CPU time = 0 ms, elapsed time = 73 ms.
-- Query 2
(296 row(s) affected)
SQL Server Execution Times:
CPU time = 0 ms, elapsed time = 100 ms.
If I increase the number of terms in the query you can see how this affects the execution.

And gives the timings:
-- Query 1
(441 row(s) affected)
SQL Server Execution Times:
CPU time = 0 ms, elapsed time = 80 ms.
-- Query 2
(441 row(s) affected)
SQL Server Execution Times:
CPU time = 0 ms, elapsed time = 143 ms.
Comparing the timings, there was a 7ms increase for the first style but 43ms for the second - almost a 50% increase.
The increase between the two sets also shows that the performance should be better for the first query style will scale better as you increase the number of terms.