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Just to be certain, you did set the Workflow Properties to indicate which categories go with which workflows, right?
Also, I find that categories are not very useful. The main reason is that if a file is mis-categorized, you cannot correct the problem without deleting the file and re-adding it. If you simply put the conditions directly in the workflow properties, when a mistake happens that causes a file to end up in the wrong workflow, you can move the file to the correct workflow by using a workflow link.
I agree with Jim Sculley It was recommended by our VAR to stay away from categories for the vary reason he pointed out.
Hello Rashesh, After you modified the Category, did you delete the file and re-add it? Joy