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The Categories that can be used in this extension are defined within the Moneydance file using the Tools->Categories tool.
When you use this extension for the first time on any particular budget it will load every expense category in the Moneydance file, there if you use this feature there will not be any categories to load.
Either, you must delete some categories from the list, or you must add more categories within Moneydance and reload this extension.
A list of available categories is presented:
Just click on the categories you wish to add and click on Add Selected.