This option blocks the unsupported display of the categories and subcategories lists on the main shop and archive pages, and forces the Shop page display and Category display options (see Appearance > Customize > WooCommerce > Product Catalog section) into the Products display mode.
You can disable the products display enforcement if you do not wish the filters to work on shop and archive pages and, for example, use them only on the filterable [products] shortcode pages.
Version 1.5.5 of the plugin has introduced the Product categories / subcategories option in the annasta Filters > Product lists > Add elements admin section. This option allows the insertion of categories/subcategories lists that reflect the state of the currently active filters.