Update: WooCommerce 6.8.1 fixes this issue
WooCommerce 6.8.0 was released last week and appears to have added a potential new bug related to shipping physical products.
Smart Shipping for new sites
A new featured called Smart Shipping that is supposed to set a default shipping zone and free shipping method for new sites selling physical products. A new “Review Shipping Options” task is also set in the Things to do next section when setting up a new site.
Potentially overrides current settings
A bug has been reported (#34319) that current settings are or can be overridden by this new feature, adding a new default shipping zone with free shipping even if shipping zones and methods have already been set.
Bug does not appear to be widespread
Of the many WooCommerce sites we manage, we’ve found only one site that that had this bug affect shipping. Unfortunately orders over the weekend were placed without shipping charges.
Solution: remove newly added shipping zone
The solution for now is straightforward: simply remove the newly created shipping zone.