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The functionality of the WooCommerce Product Categories widget has changed, the “Only show children for the current category” option now does exactly that. This is somewhat counter intuitive after the old way of working, and something is potentially broken as that setting seemingly ignores the “Show hierarchy” setting. Personally I would have done it a different way which didnt break sites that are already deployed and working as expected.

Anyhoo, turn that setting off so you end up with a full menu showing all categories and all children as detailed in previous posts and apply the css below… problem solved.

.product-categories .cat-parent .children {
display: none;
}

.product-categories .cat-parent.current-cat .children ,
.product-categories .cat-parent.current-cat-parent .children {
display: inherit;
}

@mikejolly, woocommerce is fantastic (it owns virtuemart – which we used to use and support until its author started making bad decisions and being rude and arrogant in a public forum) and you are doing a great job, but please try and avoid breaking already deployed sites like this in the future, I appreciate you have changed behavior to what you deem to be correct behavior but some warning is always good, it took me a lot of head scratching to resolve the issue and looking back over it, its no wonder that you and everyone else on this thread were talking at crossed purposes.

@everyoneelse, now ive hopefully given you an answer, you can all do me a favour by pushing for intrinsic wordpress functionality to diable plugin updates on a per user basis so I can prevent all my clients trying to be helpful and breaking all their sites at once overnight if something like this happens again….