Q. Why do I see subgroops in the category section - above the subgroops section?
A. If you have subgroops that are showing outside the "Member Started Subgroops" section, then they are orphaned subgroops, meaning the creator removed the subgroup from his or her preferences, but there are still posts within the subgroop.
To solve this: either delete all the posts in the subgroop or put back the entry in your prefs file to make it appear with the other subgroops.