Transfer changed to Category not showing in reports

Transfer transactions should not also have categories, and visa versa, or you will run into problems and inconsistencies like this. In some cases, Quicken blocks a transfer transaction from having a category, but depending on the order you enter the fields, it still allows it. This is a vestige of the program's roots a decade ago which the former product manager has said will be eliminated at some point in the future because it violates the fundamental rules of accounting. The developers  specifically added the ability to include Transfers to and from other accounts to reports as a way of including transfers — which are neither income nor expenses — in reports. I suggest you remove categories from those transactions, and just accept that they will show up in the transfers section of reports rather than under your preferred category name; the bottom line affect is the same.