OK, in that case your best bet would be to disable all plugins, and also flush your browser cache completely (or use a different computer/browser for testing), and see if the problem persists. (Clearing your cache is important in case the browser is “remembering” a rogue redirect.)
If it works with no plugins, you’ll need to enable them one by one and test again to work out what is causing the trouble. If you’re using any plugins that claim to do anything at all to the login process (e.g. restyle your login page or whatever), that would be a good place to start. It’s also possible that your theme is in some way incompatible with the WooCommerce login/register forms, so it would be worth trying a different theme too.
As I mentioned, this plugin only adjusts the password-choice page, it doesn’t change the actual control flow of the password reset process. (Also, I’m assuming you know that the password reset process involves requesting a password reset email via the “Lost your password?” link, then clicking on the link in the email you receive? If you’re missing that step, and not getting an email, then maybe your server is not sending email properly.)
If you’re still having trouble, it would be best to get more help in the WordPress or WooCommerce support forums as I don’t think this plugin is the cause (or solution!) of this particular issue.