Continuity mistake: When Lister tells Cassandra he is not going to kill her, he sticks his chewing gum on the wall and begins walking out. Seconds later, when the fan causes the gum to fly across the room, Lister is now standing inside the room. (00:27:15)
Continuity mistake: In the scene on the Canaries' transport, where they first try to convince Kryten to record the women showering, Kochanski speaks the first line in the scene, but when the shot changes to the wide shot, she isn't there anymore. (Confirmed on the DVD commentary). (00:05:55 - 00:07:20)
Continuity mistake: When the virus starts to eat the potatoes, Rimmer picks them up from the pile just below eye level. In the wide shot it shows the potatoes are just below waist level and Rimmer would have had to lean much further away from where he was standing to get the potatoes from that height. (00:20:00)
Continuity mistake: When Bird-man loses his glasses, he is feeling his face. In the next shot both of his hands are on the floor. (00:25:40)
Continuity mistake: When the crew are backing away from Pete, the way they are standing changes between long shots and close ups. (00:26:10)
Continuity mistake: When Bird-man's boots drop to the floor, the crew are looking straight forwards. In the next shot they are all looking up. (00:26:45)
Continuity mistake: When Pete eats Bird-man, Bob is with the crew in the cargo bay. When they run away, Bob disappears. (00:27:00)
Suggested correction: Lister can only see M-Corp products and M-Corp employees. Cat is not an employee of JMC or M-Corp, so he disappears. Lister is the only member of the crew who is employed by M-Corp at this point.
Suggested correction: Cat was a descendant of the cat Lister brought aboard Red Dwarf. Would it be possible that the new owners might have stricter security controls, and Lister was sent to Stasis for a different reason?
Andy Benham ★
Inventing Deux ex machina explanations for a plot hole doesn't make it any less of a plot hole. M-Corp erases all of the Jupiter Mining Corporation's equipment, personnel and infrastructure from Lister's life. In no way is Cat a part of that. He has no connection at all to the Jupiter Mining Corporation, and until he meets him in Episode 1 no connection to Lister, either.
If M-Corp only erased JMC equipment from Lister's life, then Kryten, who belongs to DivaDroid and not the JMC, wouldn't have disappeared either. He disappears as he doesn't belong to M-Corp, not because he belongs to the JMC. Cat has no connection to M-Corp, as he wasn't a part of the JMC (as you pointed out), and is therefore erased for Lister.