Hi,
Where did you take that screenshot? At the checkout?
If so, it shouldn’t matter. WooCommerce ensures to set the shipping city value to the billing city when the ‘ship to another address’ function isn’t used. (its done here: https://github.com/woothemes/woocommerce/blob/9817caccdd1f450c3f59a9e86b774993ba684f4e/includes/class-wc-ajax.php#L320, among other places)
I think I’ve actually found a bug in WC..
When entering the city and trying to checkout for the first time at the checkout it works properly. But then when changing to a valid value and trying again, the old value will be returned seemingly causing this snag.
There doesn’t seem to be a fix available other then fixing this in WC core, if you’d like to make this change right away you can add these lines to the includes/class-wc-checkout.php file
https://cl.ly/030s3D0w1C2o
I think I’ll suggest this as a change to WC.