Google Ads already has reports by category and brand. Why another one?
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Google's reports are built on what was shown. A product that never made it into a campaign won't appear in them — as if it did not exist. The portal takes the catalogue as a whole and shows the part the ads never reached as well.
On the screen, less than a percent of the catalogue brings conversions. Isn't that a failure?
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No, and the portal says so right on the screen: a narrow core is normal for a shop. What to look at is something else — the gap between the “Eligible for ads” and “Showing in ads” stages. That is where the catalogue you have already built up sits, and the ads make no use of it.
Are two years enough to talk about a season?
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Enough for one thing: to check whether last year repeated. If it did, the season can be trusted and purchasing planned around it. If it didn't, the portal will say so rather than name you a season. The five states above are exactly about this.
How is this different from the “Products and labels” section?
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By altitude. “Products” takes each item apart separately and gives lists of specific SKUs. “Assortment” looks at the catalogue as a whole: how much of it reaches sales, how the budget is spread across groups and how that changes with the seasons. The data is the same, the scale is different.