Essentially if you have a custom taxonomy for Woo products and you assign a layout from the layout builder to the taxonomy, if there are no products assigned to the taxonomy then the default woo template shows rather than the assigned layout.
According to support this is the correct behaviour. To me this is either a bug or an oversight as we would not want to use the default template if we have assigned something to the layout builder.
I’ve taken the fact that the taxonomy could be empty in my layout with all the correct permissions so this really makes no sense.
You can view the thread here: