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Creating categories the right way

Thanks in advance for any help.

Confused about the category function.

I made a short video:

Also here is the read-only link:

https://preview.webflow.com/preview/leclare-0aa7f9?utm_medium=preview_link&utm_source=designer&utm_content=leclare-0aa7f9&preview=0f15342f2300e077dd2b78489f639f1e&pageId=5de32ffbd41c9b0496c7771a&itemId=5de32ffbd41c9b13b3c7774b&mode=preview


Question: What am I doing wrong that prevents me from creating a dynamic category page?

I would love to break it down for you, but you can use this e-commerce website preview link I’m working on right now to see for yourself.

https://preview.webflow.com/preview/cougarvintage?utm_medium=preview_link&utm_source=dashboard&utm_content=cougarvintage&preview=863e70a8483d6138b0f00266e95dc41a&mode=preview