I have created a new work order category, listing an existing category as the parent. When I add it to a work order template, it appears as it should. I have the folder set correctly (the parent category) and the category of the template is set as the new category I just created.
When I create a new work order and select the template in question, the category field is blank. If I click on the right to manually select, the new category I created is not listed as an option.