Hi,
There is a big difference between the category where the vendor categories will be created and the setting which set the "vendor root category".
Please note that once the vendor category is created, the category won't move (except if you edit it).
After that, I'm sorry but I don't understand what your screenshots mean.
With just these elements ; it's not possible to understand anything of what is right, wrong, should be, etc.
Regards,
Jerome - Obsidev.com
HikaMarket & HikaSerial developer / HikaShop core dev team.
Also helping the HikaShop support team when having some time or couldn't sleep.
By the way, do not send me private message, use the "contact us" form instead.