https://www.aonprd.com/MagicWeaponsDisplay.aspx?ItemName=Gory
On this site enchantement is placed in "ranged weapons" part, but can it be a mistake?
Can I really make my crossbow gory (wounding)?
The text "functions as a wounding weapon" would make it follow the rules associated with a wounding weapon. Thus, it only applies to melee weapons, given that the only exception is the amount of bleed damage dealt.
AoN has it in the wrong cateGORY.
The intimidate check on critical confirmation is a bonus unique to this enchantment and is not an exception to the weapon otherwise functioning as a wounding weapon.