1) Yes, Free version has only All categories, Pro has more features and opportunities.
2) We checked our free version and all works, maybe it is problem of template or host.
Try to create other menu for it.
• In the Joomla Admin panel, choose the menu you want BookLibrary to belong to, for example for the main menu choose [Menu] -[Main Menu]
• Choose [New]
• Click on [BookLibrary]
• Click on [BookLibrary – Show all categories]
If you will have problems, You can give us FTP and admin access and we will try to help you FTP and admin access You can send to our contact form.