'Category Privileges' does not seem to work
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If it is not behaves what you've chosen the access category checkbox?
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I want the registered-users and Guests to access the Category/Topics. I want registered-users to be able to reply to the Posts in this Category.
But I do not want them to be able to create new Topics in this Category.
So, I think the Settings are correct, no ? -
Your settings are correct but if you are checking the category as an administrator user you will get all privileges, try testing with a regular user.
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I can confirm that the "Access Topics" privilege is not functioning correctly, so will need to look into that.
However, with "Create Topics" disabled, the "New Topic" button is not present, and the category itself is not present in the composer dropdown, so that privilege is working as intended.