It's not totally clear the issue you're experiencing. If you can explain the specific elements you have involved, how they are set up and what you are expecting to happen vs what is actually happening, we'll make sure everything is working as it should.
Ya, adding albums to categories would be awesome. Albums keep track of our thousands of images from a single event. Categories work best for setting what type of media it is. However, these two functions don't work together so we are forced to add the media twice. Decided to just list videos via category and left albums for everything else because that's the only way to manage this content without duplication.
Otherwise media prefix add on would do this too if that was ever a thing.