Confidence and Paranoia - S1-E5
Continuity mistake: At the start of the episode, when Lister is watching the film, keep an eye on his milkshake. One moment the glass is on the table, then when the camera cuts, he's drinking from it. (00:02:25)
Confidence and Paranoia - S1-E5
Continuity mistake: When Lister is watching the film at the start of the episode, he says 'would you let me watch the film' to Holly. His arm is gesturing to Holly, but in the next shot he is picking up chips from his lap. (00:02:50)

Confidence and Paranoia - S1-E5
Continuity mistake: When Lister is in the Medi-bay, he has his duvet on his lap. The angle changes and he has the duvet over his shoulders. (00:12:30)
Confidence and Paranoia - S1-E5
Continuity mistake: When the Cat visits Lister, Lister puts his arm down on the bed, but in the next shot he is leaning on his hand. (00:14:45)

Confidence and Paranoia - S1-E5
Continuity mistake: When Confidence is telling Lister that his song was the greatest love song ever, Lister has his right hand on his lap, but in the next shot, his right hand is suddenly on the guitar strings. (00:19:35)
Confidence and Paranoia - S1-E5
Continuity mistake: When Lister and Confidence go outside the ship, they do a little dance and both put their right feet forwards. In the next shot, their left feet are forward as they continue the dance. (00:25:30)

Confidence and Paranoia - S1-E5
Continuity mistake: When confidence explodes outside the ship, a helmet appears on the walkway which was not there earlier in the scene. (00:26:50)






Suggested correction: Lister can only see M-Corp products and M-Corp employees. Cat is not an employee of JMC or M-Corp, so he disappears. Lister is the only member of the crew who is employed by M-Corp at this point.
Suggested correction: Cat was a descendant of the cat Lister brought aboard Red Dwarf. Would it be possible that the new owners might have stricter security controls, and Lister was sent to Stasis for a different reason?
Andy Benham ★
Inventing Deux ex machina explanations for a plot hole doesn't make it any less of a plot hole. M-Corp erases all of the Jupiter Mining Corporation's equipment, personnel and infrastructure from Lister's life. In no way is Cat a part of that. He has no connection at all to the Jupiter Mining Corporation, and until he meets him in Episode 1 no connection to Lister, either.
If M-Corp only erased JMC equipment from Lister's life, then Kryten, who belongs to DivaDroid and not the JMC, wouldn't have disappeared either. He disappears as he doesn't belong to M-Corp, not because he belongs to the JMC. Cat has no connection to M-Corp, as he wasn't a part of the JMC (as you pointed out), and is therefore erased for Lister.