There has been a lot of debate in my D&D group about the specific wording of Dispel Magic which were not answered by the D&D Sage Advice Compendium
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You seem to be misunderstanding what it means by ‘Magical Effect.’
Your interpretation of it is “A type of magical thing that is happening.”
The actual meaning is “A Single, Discrete Magical Thing that is NOT a Creature or Object.” You can’t use Dispel Magic as an AoE Spell Purge to burn out all instances of a particular spell.
A Spell is a discrete Magical Effect
PHB201
When it refers to a Magical Effect, it is talking about things like Wall of Fire, Storm of Vengeance, Illusions, and so on. An individual instance of magic that is not attached to a creature or object. If that targeting option didn’t exist, you couldn’t Dispel effects like that, because a spell like Earthquake is neither a creature nor an object.
The target required by Dispel Magic is a specific target. Either 1 Creature, 1 Object, or 1 Magical Effect. You cannot target a type of magical effect.
And to give an actual Sage Advice quote…
Q: If dispel magic targets the magical effect from bless cast by a cleric, does it remove the effect on all the targets?
A: Dispel magic ends a spell on one target. It doesn’t end the same spell on other targets.