I cannot reproduce the issue on my local box. Can you repro it on your local box? If so, try to set a breakpoint in line 89 of Web\Store\Blocks\CategoryListToggleSubCategoriesStyle.ascx.cs
div.Attributes.Add("style", showInitially || (null != c.ParentId) && activeCategories.ContainsKey((int)c.ParentId) ?
"" : "display:none;");
And then check why the condition is true if ShowLevels equals to 1.
DotShoppingCart Staff
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