I was helped a while back to get my shop to show subcategories. It was working great right up to the point where I had to update the Toolset plugins. Then the whole thing broke. The shop page did not display anything at first. I had to change things around to get that back up, but as you can see the shop grid no longer displays the subcategories on the top of the page.
This indeed fixed the issue. So the bug is in the way views bring in the content template? I will leave this issue as unresolved, so you can provide me feedback. But Shane, thank you once again. I would have not attempted this.