I tried it with both D7 versions and have the same issue. I set up a block and set it to display in the content area. I use Contextual Filters : Content: Has taxonomy term ID > Provide default value > Taxonomy Term ID from URL. When I visit a term page the View shows the nodes associated with that term. I set up one of the filters to be exposed and set it to the auto-complete field but when I start typing in text the auto-complete doesn't find any data in the exposed text field. If I remove the auto-complete and leave the field as normal text I can then filter out the table properly.

If I remove the contextual filter and create a page with a path and go to that path then the auto-complete does show suggestions from the text field data.

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end user commented

Just to make sure it wasn't my theme I tested with Bartik and removed all modules that modified forms. Same results. Also the field still works for filtering out by the data in the text field but just the auto-complete doesn't work.

Also same thing happens when using TVI to assign a view to override a term page.