Please navigate to WooCommerce > Settings > Shipping > Shipping Options > make sure that the Shipping destination is set to Default to customer billing address. https://prnt.sc/YP2icbUNcmpB
Please make a full backup of your site and check how it works with the default WordPress theme like WooCommerce Storefront to understand if it is our theme issue or not.
You have checked with the default theme and the issue still remains. It means it is not our theme issue. Please contact the woocommerce community in this regard. They will guide you better because this functionality comes from WooCommerce.