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But if the shutter and the bulb work, it should work correctly right?
1 bulb for dipped and high.
The shutter blocks the bottom part when only dipped are required AFAIK

Or am I missing something?

(this was how it worked in my home made projector headlights on my 9N3, H1 Xenon bulb for dipped and highbeam changed by the shutter)

That's exactly how it works ("bi-xenon") ,


so it's hard to determine what's causing the lamp to go off when the shutter is activated.

Maybe a faulty wire?
Double ground?
Short to plus or ground?
I would suggest to check the loom to the non working side.
Maybe when activating high beam the lamp loses power?