Squarespace have acknowledged that this is a technical issue.
The reply you've received ("We’ve noted your report with our Engineering and Design teams for review") is the standard reply to acknowledge the technical fault that Squarespace need to investigate. I don't know if the issue is with the Etsy API or with Squarespace, but unfortunately there isn't anything that any of us can do to resolve it.
Squarespace doesn’t use this forum to track or respond to bug reports so, if you want to follow up about this issue, you are encouraged to contact Squarespace Customer Support directly by raising a ticket.Â
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