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In Magento v18.104.22.168 when I click on the Product Category tab the category tree is not expanded and checked category is not immediately shown (see attached image). Can confirm this behaviour also in your installation?
Mine’s worse than that. The only category that shows is the root category and it can’t be expanded. It’s as though that’s my only category even though there are hundreds below it. Upgraded from 22.214.171.124 to 126.96.36.199.