VM2 - VM Search Question

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As soon as I turn Cat Filter on in VM Search Module, Page 1 of search results shows fine but Pages 2, 3 etc shows no products (even though there are more products within in that category and pagination appears to show correct number of pages). I have tried it with different templates but get the same refult.

How else can I filter search results using the Category filter ?

Search works perfectly when the Cat Filter in VM Search switched off.

Any help appreciated

VM 2.04 J2.54