It looks like it doesn't matter what you have the settings set to, just move back and fourth between the categories and after a copy times all ISO/CSO stop showing up. It will still show homebrew and PSX games but PSP ISO/CSO will not show up until the PSP reloads the MS for some reason.
I have found that if you have the No Categories option, loading it will cause the other Categories to reload but they fail again after switching between a few categories.
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