Has anyone taken a look at this yet? I'll be happy to answer any questions about it.

I ran into something like this recently... we had an issue created in the wrong project, and when we moved it to the correct project (one which didn't have any categories defined) the issue kept its old category, but all the "update category" pull-downs are empty because the issue's project has no categories. I guess because you can't select anything different, it never checks the old category to see if it is indeed different (this may be misguided logic to protect the old category, or just an accident).

So attempting to update the category results in the issue being touched but no actual change to the category occurs. The proposal to allow remapping of categories during a move seems like the right way to go here. I don't agree that categories should be automatically added to another project however, that seems like a great way to accumulate junk categories by accident.

What I think should happen is that during the move, the category the issue had is dropped (but displayed for the user), and the user is given the opportunity to set the category from the list of categories in the new project, or set to nothing (default). And for administrators, they could create a new category on the spot, with the old project category as the default naming.

Thus, there's nothing automatic in the above, the transferring user will get to choose what to do.