Categories not displaying

-- HikaShop version -- : 2.6.4
-- Joomla version -- : 3.6.4
-- PHP version -- : 5.4.45
-- Browser(s) name and version -- : Chrome
-- Error-message(debug-mod must be tuned on) -- : n/a

I am using category listing view and have 3 levels of category, which is reflected in my sitemap also.

Root Category
-- Level 1
--- Level 2
---- Product 1
---- Product 2

Only level 2 has products directly within it.

My menu item Categories Options settings are:
DATA DISPLAY
Main category: root category
Random items: No
Sub elements filter: direct sub elements

Category data display:
Shop children: all direct sub categories
Children quantity: 0
Products number: no
Only with products: no


My problem is, the page/menu item for the Root category does not display the Level 1 categories data on it.

Level 1 page/menu item which is categories listing also, displays the level 2 category data (both empty and not empty categories) - it works correctly.

I have changed this, and it now displays some categories from Level 2, but none from Level 1 which is what I am after.