I should have followed up on this for others having an issue.
Thanks @kpirnie for the suggestions.
It turns out the solution was simple and straightforward, but that there was a lot of obfuscation going on to see it due to the drop down listing a few hundred other options for filtering. The list included attributes and keywords and everything else you can think of so i was trying to sort through a massive list of choices and didn’t initially realize there was a separate taxonomy selection for WooCommerce’s version of “product_cat”.
The confusing aspect is that the taxonomy selection that comes up first just simply doesn’t work using the AND option. It would be nice if this was made more clear, or if selections that will do nothing are simply not displayed. I’m not sure how doable that would be, so it might not be that simple. So when i realized there was a separate taxonomy selection, but that is was buried hundreds of selections down, it worked just fine. Under the “product_cat” section, i was able to select the category i has chosen for the product.
So it would be as follows:
Post type = Product
AND Taxonomy = [whichever one you have assigned]
But ignore the initial listing of taxonomy or category, and find the one specifically for “product_cat” for WooCommerce.
So it was as easy as it should have been, but hidden in plain site by a bunch of irrelevant selection options.