How to properly use two contextual filter for taxonomy
This happens because the views checks the first parameter and the first parameter overrides the second parameter. In your case, if you rearrange parameters so that parameter 2 comes before parameter 1, you will see this time views working with parameter 2 and not with parameter 1.

You can fix this behavior by creating two separate pages in views and each page will override the behavior of the other by selecting For:"This page(override)" option.

In the first page add the two contextual filters(parameter 1 and parameter 2). While adding the contextual filters you have to select For:"This page(override)".

In the second page of the views, add the two contextual parameters, this time add parameter 2 before parameter 1. In this case also, while adding the parameters you have to select For:"This page(override)".

Good luck!