I am unable to replicate on a couple installs your copy issue so still looking over your setup trying to see what might be conflicting.
As far as copying B and C to a new cat I can see that issue and the proposed change would be to surpress the additional cat box on those additional photos
IN editphoto.tmpl line 72 add the code in bold
Code:
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I have already adjusted your template so you can test this out and I am passing this along to Michael