Hi NIcolas,
Got it this time, it did work when I changed the order of the categories on the product level, thanks so much for that!
Unfortunately I came across very worrying problem that I flagged in another thread...
each time when I delete the assign categories and straight after that add them in the correct order and save, the changes are not saved. But when I delete the categories and save changes then add categories in the right order and save the the changes for the second time - they are saved. It reminds me of the issue I'm having with the product images not being saved even though the saving process goes with no problem.
Thanks,
Kashka