User albums are user's albums not categories you create or set permissions for therefore their permissions come from the members gallery which is the one cat you can not delete and the albums are normally viewed under the members gallery which is the category they get master permissions from if they are public. The user sets whether it is public or private. If it is private it is password protected and only those the user gives the password to can view it.
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We can't have someone create an album that is open to the general membership, and create another album that's restricted by usergroup permissions.
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Users can create personal albums that are public or private meaning password protected. They dont create anything that is restricted by usergroup