Continuity mistake: When Kochanski is banging on the pipes at the start of the episode, she is using her right hand. There is then a close up shot of the pipe and you can see she is using her left hand. (00:01:50)
Continuity mistake: When Kochanski is in bed at the start of the episode, she is wearing stud ear rings. When she gets up to go to the kitchen area, they are now hoops. (00:02:20 - 00:03:50)
Continuity mistake: When the ducts are being backwashed, Lister's dreadlocks are on his right shoulder. But when the shot changes and he says "I hate this. I really hate this.", his locks are on his left shoulder. Then the shot changes again and they're back on his right shoulder. (00:23:53)
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.