freshly installed vanilla 1.3.9h:
I am not sure whether this is a bug or feature, but it is creating certain difficulty for me entering inventory.
Once there is a product in a category, the 'new category' button disappears.
There is a workaround. Once any products have been created in a category, I can create a sub-category by moving out all products, creating sub-category and moving products back in.
Thanks!
OTM
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