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In this normalization question

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When we convert it into 1NF according to the given site the answer is

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Is there a need to take out movie category?
Won't it cause information lose?

Also when we convert it in 2NF the table of movies doesn't contain category column.

Isn't there transitive dependency between movie name and its category?
What is Normalization? 1NF, 2NF, 3NF & BCNF with Examples

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I believe removing the category without showing it as being moved into a "movies" reference table is an oversight.

Yes, removing that column as shown in your question does result in data loss.

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