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Just as an example:
Top-level gallery (not a category): Can view, no moderation, can post images, YYYYNNYYYYYY
Nested category: Cannot view, no moderation, cannot post images, NNNNNNNNNN (all perms no)
A user in the group with these permissions cannot see the nested gallery but CAN select this as an Upload destination, CAN upload pictures into it, and then CAN see the rest of the category once they're taken into it via the upload.
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