Category Dropdown in sign up form unpopulated

If I select the option from settings: Do not allow choosing of parent categories then the drop-down on sign-up page is empty. If I remove that option with the entire categorries/sub-categories.

However I do not want people choosing the main categories and that option is also recommended with grid display. However chooses that seems to be leading to this issue.

Please see: http://store.elanws.com/elan-stores-pro/?action=new_blog - click on sign up for trial account.

Also in stores admin for picking up store category I am getting this error:
Warning: Missing argument 2 for MP_Shortcode_Builder::wp_dropdown_cats() in /home/elanws/public_html/store/wp-content/plugins/marketpress/includes/admin/class-mp-shortcode-builder.php on line 144