When I set it up like that and I include a product category in the Tags, Categories & Taxonomies section it only shows the form on that one product category page, when I leave it blank it shows all terms including ones not present in the current category page even though I have “hide empty search terms” disabled. Also selecting a term reloads the page to just shop page with that filter applied (taking me out of the product category) and then no results are loaded.

I am using a taxonomy pages plugin to add the shortcode to product category pages, on pages I don’t have the shortcode the form doesn’t show up at all (shouldn’t it be since the form is set to woocommerce shop?)