Continuity mistake: After Starbug and Blue Midget leave Red Dwarf, there is a shot of Blue Midget driving away from the ship, towards the camera. Cat and Kryten are the only two on board as Rimmer and Lister are on Starbug, but there are three people shown inside Blue Midget. This is because the shot was taken from series two, in which Rimmer, Lister and Cat were inside it. (00:03:25)
Continuity mistake: When Lister is telling Rimmer that he is going to die and that Rimmer doesn't need food, there is snow over his face, hair and coat collar, but a few seconds later, the snow has mostly disappeared. (00:09:35)
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.