Hi Shufflehound team!
I hope you are well today and thank you for your questions.
how do I change the magnify glass in the head to a search bar active like the attached screen shot?
You can try using following plugin to achieve this.
How to a make my subcategories go into a drop down list in the shop area? (like the attached pic #2)
You can either develop custom code to achieve this or use plugins like following.