Product categories are not showing up when i create a new product

hi im having a nightmare i have set up my product categories i am now starting to add products however when i click on the categories in my product field it sais (none) i have followed alot of advice but nothing has worked. Please could you help anyone ? thankyou so much !
ps i have changed the search field so it should be showing up!

id be really great full if someone would take 20 mins out of there day to take a look at my app i feel like i have really unnecessarily confused things!

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