When I looked at the listing to change the category  crafts starts with Crafts no mention of Home and Garden. So not sure why it comes under Home and Garden when searching that category.  But to be honest I have not noticed where it was before.

....back in the day, you could only list auctions freely under Collectables.....that's the only reason I noticed it

...just checked yours....your art/craft supplies (3) are listed under Home/Garden

When doing the listing they likely list it under collectables for the fee structure then when a buyer searches it is in Home and Garden. Not sure why they would not change it to just be in Home and Garden for the reduced fees as its not like they are high profit items like collectables.