Revealing mistake: Holly's night cap is in front of the edges of his monitor. It should fade into the white border of his screen. (00:05:25)
Revealing mistake: During filming of the this episode, Craig Charles was called away for the birth of his son, Jack, so production manager Mike Agnew stepped in. Although Lister is wearing a space suit at the time you can still tell which part is Mike thanks to a continuity error - Mike forgot to put on Lister's plaster cast. (00:15:15)
Revealing mistake: When Lister uploads his memories, the wide shot shows various videos of Rimmer in the background, but in the close up it shows a plain white screen. (00:17:55)
Revealing mistake: The square bluescreen outline can be seen in the wide shot of the obervation dome scene. (00:24:50)
Revealing mistake: When Rimmer and Lister are in the observation dome, background stars can be seen on Lister's locks and on the top of his forehead. (00:25:40)
Revealing mistake: When Lister and the Cat drop the gravestone and break their feet, you can see that it does not land anywhere near Lister's left foot. (00:26:55)
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.