In Categorize.body.php the the category harvesting fails if there is more than one category on a line. To fix:
Change:
$m_pattern = "\[\[({$m_catString}|category):(.*)\]\]";
to
$m_pattern = "\[\[({$m_catString}|category):(.*?)\]\]";
(i.e. make the search for closing ]] lazy)