Continuity mistake: When Lister rides his bike in the first scene, there is a Union Jack just behind his seat. When he stops, a US flag has appeared below it. (00:01:45)
Continuity mistake: When Lister is fixing his robot goldfish, he picks it up with his right hand, then after the camera cuts, he puts it back into the tank with his left hand. (00:06:00)
Continuity mistake: The cuts on Lister's robot goldfish disappear when he throws it back into the tank after fixing it. (00:06:00)
Continuity mistake: Both Rimmer and Lister go through a door on the right hand side of the captain's office which wasn't there in the previous episode. (00:10:20)
Continuity mistake: When Lister cuts himself shaving he moves his locks behind his back, then in the next shot, they are over his shoulder again. (00:12:55)
Continuity mistake: Just before Lister cuts himself shaving, he is shaving away from himself. The camera changes and he is shaving in the oposite direction. (00:13:00)
Continuity mistake: The sign above the stasis booth in this episode is different than what it was in the previous episode, "The End". (00:14:00)
Continuity mistake: When Lister sees the future echo in the drive room, Rimmer points when he says 'Shut up.' However when the scene plays out again, Rimmer's arms stay down by his sides. (00:15:00 - 00:16:00)
Continuity mistake: When the Cat's future echo says, "I think I lost my tooth," he is at The End of the corridoor. When the present Cat say it, he is just leaving the sleeping quarters. (00:16:30 - 00:22:25)
Continuity mistake: At The End of the episode, when the future Lister and the babies appear, Rimmer has his arms folded. In the next shot, Rimmer's hands are on his hips. Also, Lister's locks change positions. (00:27:50)
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.