I was hoping that v1.03 would have brought some changes to the way category is picked on the add product page.

If we have lots of categories and sub categories, it is quite confusing for the vendor. for e.g i have category Women with sub cats shoes and watches and then i have category Men with sub cats shoes and watches. IF the vendor pick women cats first, he would not know the sub cat ‘shoes’ belong to which parent category.
Can you tell us where to edit the add product page? for e.g where it says categories i would like to add a text “choose sub cats first and the main categories last)”. or maybe in next version when we choose a category, the option remains in the drop down

Does anyone have a better workaround to avoid confusion for the vendor?

I have also tried another approach. For e.g you run a site with lots of different type of products, lets say you got clothes, Shoes, electronics, Furniture etc. Instead of having sub categories like clothes: jeans, top, blouse, jacket etc. You create attributes and filters. So the vendor chooses the category (in other words the department store), for e.g clothes or shoes (as category) and then for the attribute section he has clothes: jeans, jacket etc (as variables) and for shoes: flat shoes, heels, etc So a shoe vendor will be concerned with just the shoes attribute where a furniture vendor will look at furniture attribute and ignore the others.

That is less confusing for the vendor when adding a product but you will be limited in category navigation if you use the woo category filter. You will have to build your sub menu items with filters.

I would like to know how users with lots of cats and sub cats dealing with that?