Nope,
the filter is not functioning at all (tested on WP 5.2.4. Woocommerce 3.8.0 and several themes with no builder:
– not filtering in place,
– no indentation in category hierarchy, because of overlapping padding of css rules from wpf-public.css:
line 164 ul
line 388 .wpf_submenu,
Appreciating your work, waiting for fixes,
Regards