If I edit a product and change "content template" to "none", I see the same output as when I select the product template
Changing to a core theme makes no difference.
Another older site (that's up to date) but uses Toolset Views instead of Toolset blocks works as expected.
When editing the content template if I click on "view on front end", the product displays as expected.
I have cleared the caches
If I switch back to using the default woocommerce template which leaving "content template" set to product template, the product template is used as the description. Setting "content template" to none shows the standard description. This seems to imply that the incorrect template is being over riden.