Hello,
I have some categories in Menu 2 excluded in the Atahualpa theme (3.7.12) Header Area > Menu 2 (Category Setting) > Exclude categories from Category Menu Bar?
It used to work great until today which for some reason it has stopped working.
I was wondering if anyone could help me.
Many thanks!
Yola

Someone else had the same issue. You could build a custom menu.

This is because of a bug in the Wordpress code wp_list_categories() function that has been reported to wordpress - Your choices are
1) go back to 3.6.1
2) wait for WP 3.7.2
3) make a change to one of the wordpress core modules - see http://core.trac.wordpress.org/ticket/25710#comment:9

This must be some kind of karma.
I am using Atahualpa for some time now, probably over a year and I've never used the category menu.
Now I tried to activate it and of course exclude some categories, only to find out that the feature broke down few days ago.

I implemented the third solution and it works great.
After updating to 3.7.2 do you think that this change of code will affect my site in any way.

Atahualpa version 3.7.2 is an older release - it is currently at 3.7.12 -
I have no idea how Atahualpa 3.7.2 will work with WordPress 3.7 and would suggest you upgrade Atahualpa if you run into any issues before posting about them because the first thing I'll tell you is to upgrade Atahualpa to the latest release