Other mistake: Kryten places Rimmer's light bee on the floor, then begins the process of reinitialising him. As the process finishes and Rimmer looks at Lister (who looks away), the light bee, which should be hovering within his torso projecting his image, is still visible on the floor between his feet. (00:06:00)
Other mistake: When Legion stabs his left hand, everyone grabs and shakes their left hands - except Lister, who grabs and shakes his RIGHT hand. (00:22:40)
Trivia: It was rumored that Alfred Molina and Alan Rickman wanted the part of Rimmer. Lee Cornes also auditioned for this role (he later guest starred on the show), as did Hugh Laurie. Robert Bathurst, Norman Lovett and David Baddiel auditioned for the role of Lister.
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.
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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.