Trivia: In this episode only, the part of Kryten was played by David Ross. It was only later, during the writing of the scripts for Series III, that the decision was made to make Kryten a regular member of the cast. As David Ross wasn't available, the part went to Robert Llewelyn, who has played Kryten ever since.
Red Dwarf (1988)
1 trivia entry for season 2
More mistakes in Red Dwarf
Quarantine - S5-E4
Kryten: What a smee... What a smee... What a smee - hee.
Answer: In the book, the Cat finds the concept of a name confusing, as he's convinced he's the center of the universe and the idea that someone wouldn't know who he was is baffling.
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.