Subcategories Not Working

Hello!
I have several subcategories and the one I linked to in particular has 1 post assigned to it. However the only way I can get it to appear is by having the %subcategory% placed in the permalinks custom section. But when I do that it shows the word “subcategory” on any post with no subcategory.

Is there a way to get this to show and work? I want the subcategory to show in the URL like it’s supposed to.

Thank you!
Jenna

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