Continuity mistake: When Rimmer suggests bringing Legion with him, Lister says he's not going to come with them, and asks if he would ever join in on their late night sessions of pin the pointy stick on the weather girl. At The End of the line, Lister is looking to the right, but in the next shot, he is suddenly looking downwards. (00:12:35)
Continuity mistake: When Legion brings the feast, Kryten is stood by the door. Rimmer says about how he appreciates art, then in the next shot of the Cat, Kryten walks behind him. Kryten would have had to walk past Rimmer in the previous shot to get there yet we did not see him while Rimmer was talking. (00:13:15)
Continuity mistake: When Lister finishes pouring a glass of Bucks Fizz, he begins to place the jug back on the table with his hand still on it, but in the next shot, the jug is now on the table with Lister's hand nowhere near it. (00:20:20)
Continuity mistake: When Legion puts his mask back on, just as he says "Kryten knows", the mask is not properly fixed on, leaving his chin exposed, but when the camera is on him next, the mask is suddenly fixed into place. (00:21:35)
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.