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Vissa,
Would you mind listing the exact options you have configured for the "Cars" and "Trucks" categories? On my site using 1.0.1 I'm getting different results; for the categories that I have configured for 'act as category = turned off' they appear in the drop-down listing in bold are not selectable by the user.
Attached is a screen shot of what I'm seeing for those types of categories. I suspect for your categories there are some conflicting choices that are preventing them from appearing in the drop-down.
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