Hi Anthony

From the bug notes the behaviour for what happens with visibility depends on the role of the user. Is this what you are expecting?

1. Enable audience visibility (Go to Site administration > Advanced features)
2. Create a new category.
3. Create a course inse that category and go the "Audience-based visibility" section.
4. select visibility: visible to members of the selected audience.
5. select an audience with at least one member and save the course.
6. create a user to be the course creator for the previous category.
7. go to the category and assign the course creator to the user created above. (See left panel of the menu when selecting the category - assign roles)
8. create a user who won't play any role within the course or category.

• Enter as the member of the audience and go to find courses.
  Expected : you can see the category and the course inside it. You should see something like NEWCATEGORY(1)

• Enter as the course creator and go to find courses.
  Expected: You should see something like NEWCATEGORY(0). You shouldn't see the course but you should see the category.

• Enter as the site admin and go to find courses.
  Expected : you can see the category and the course inside it. You should see something like NEWCATEGORY(1)

• Enter as the user created in step #8 and go to find courses.
  Expected : You shouldn't see the category at all because there is just one course in that category and you are not allowed to see that course.

In case you have more courses in that category and you are allowed to see them. you should see the category and the courses except for those which are restricted.