How to show category/categories/subcategories and category banner

First go to the Appearance -> Customize -> Woocommerce -> Product Catalog and select 'Show categories & products' in Shop Page Display or Category Display drop menu.

How to add Header Banner for Shop

Open Shop page for edit and add Feature image for header banner. Also you can enter header height in Page Header height input.

How to add Header Banner for Product Category

Go to the Products -> Categories and add/edit category and select image for Image Header section.