Sorry - I didn't add the fix to one of the issues in my last post and wanted to document it in case someone else needs it.
If you're getting a bad rewrite request error, make sure all not-included rewrite rules are on their own line. So to fix the problem above, make it look like this:
RewriteCond %{REQUEST_URI} ^/shop/ [NC]
# Don't rewrite any URIs ending with a file extension (ending with .[xxxxx])
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