Wanted to follow up on this. QRZ support is awful and took about 10 days of them telling me to read the document to figure out the info is not in the document they were sending me a link to.
Anyway, the download from LOTW is not automatic. You need to log into QRZ and go to settings and Download from LOTW manually to shade the contacts and get LOTW credit. So just a task you need to do every once in a while.
So it was functioning as it should but their support was close to useless.