Any design and elements that you may have on this layout will be used for your Shop index and WooCommerce archives. And if you want to have a different layout for a specific product category archive, you will have to use the “Product Category” assignment.
Are you trying to display sub categories on a parent category archive? Please create your mock layout first so we will have an idea of what you are trying to do. Normally, when you add a product and assign them to each respective category, WordPress already creates each product category automatically. So if you added a new product and assigned it to a new category, WordPress has already created the category archive as soon as you published the product.
Can you please provide more information as to what you are wanting to do?
It seems that you are using the custom layout for the category page, please make sure you are not using any looper provider since on the archive page the default loop is working so you don’t need any extra loop. If it doesn’t work for you, please share your details in a secure note. Please provide the following details
WordPress Login URL
Admin-level username and password
Exact layout URL
You can find the Secure Note button at the bottom of your posts
For the shop index and the archives, you will need to have a Looper Consumer and create your own design to display the product items. If you are not familiar with the Looper feature, please check this out first: