customers that haven’t been moderated can visit the shop as well as other areas of the site. However, if a pending user tries to login through woo commerce’s login page or WordPress’s default login form they can’t get in. I’ve also noticed that they don’t display in the user’s page either until they are approved.
I am currently experiencing this same problem. I tried a reinstall of wordpress in the admin panel and deleting any extra plugins. I still have this problem
Also having this same issue.