Hello,
1) Looks the product categories widget does not have a title field if you use the new WP widget editor. Contact WooCommece plugin support about this because that is WooCommerce default widget https://wordpress.org/support/plugin/woocommerce/ . Or you can enable Classic Widget in Theme Options > General and use old styles of WP widgets that have this option https://prnt.sc/26me02m
2) Watch the video https://recordit.co/0Tq6ke2Dxb
Regards