HERE is the solution, thanks to PRO for the light bulb in the dark.
Thanks for your help, PRO.
in administrator/components/com_virtuemart/helpers/shopfunctions.php
Where your code above says:
} else {
$categoryTree .= '<option ' . $selected . ' ' . $disabled . ' value="' . $childId . '">';
$categoryTree .= str_repeat (' - ', ($level - 1));
$categoryTree .= $category->category_name . '</option>';
}
REPLACE WITH
} else {
$categoryTree .= '<option ' . $selected . ' ' . $disabled . ' value="' . $childId . '">';
$categoryTree .= str_repeat (' - ', ($level - 1));
$categoryTree .= $category->category_name . "-" . $childId .'</option>';
}
works like a charm!