I had this working finally and then I updated wordpress. I tried Gorelog’s fix and it worked, but it removed my menu. ??
Can we get a fix for this that doesn’t involve the above option? One thing I did notice (although I’m not sure if it’s relevant to the issue) is that whenever I check ‘Must use as subdomain’ and leave ‘Exclude as subdomain’ unchecked, when I save and open the category again ‘Exclude as subdomain’ is checked. This seems counter to the purpose of these check boxes.