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I'm not sure it's the version that's the issue. I run 1.6 & 1.7 and csv upload into categories via this method works without issue. Is it too much hassel for you to select the 'delete all products before import'. Then try a few product upload after just to varify that the first upload was a failure or success. Or/and doing a delete all categories and re-upload the categories to ensure they all work correctly. Prestashop is quite a fire fight sometimes with me spending lots of time trying stuff - reverting to backups and trying new things. Fault finding