Quote Originally Posted by mc12345678 View Post
I've also seen the new category button appear if all of the products are disabled in the current category. Only needing one move rather than two, although there is the risk of something going wrong in the process and if the product(s) remain could prevent seeing the new category in the listing, but that is "true" either way.
I'd call that a bug , since there are still products (albeit disabled) in the category so sub-category additions shouldn't be allowed.