Under xflow or service point, my service catalog offerings show under the "more..." icon. This screen is labeled "categories" which does not seem to fit with the screen containing individual offerings.
Can this be customized and why is this named "categories"?
Release : 17.3 or higher
Component : XFLOW or Service Point Interface for SDM when integrated with SLCM
The short answer is that this cannot be customized at this time and this is named this because it was a broad term to encapsulate all the things (including SDM) which can appear there besides just SC offerings. There no difference between "more" and the main screen. If you had less than 5 SDM areas (or categories) then SC offerings would be on the main screen and if you had more than 5, then they would be together with SC offerings under "more". So this is by design.
1. While the More screen appears only when Catalog is integrated and enabled for Service Point, however on the home screen, SDM Areas and Featured Offerings can appear together if there are less than 5 SDM areas configured by admins. In this case, they would all be just 'categories' exposed to end-users. So if not on the More overlay, these can appear together on home screen without any differentiation between the two.
2. The More overlay shows only the featured offerings to give admins the option to expose commonly used services to end-users. The 5 default categories + featured offerings are basically quick categories to let end-users log a ticket quickly for common areas/services (as configured by admins). The label does not have a direct mapping with Catalog folder structure and is only representing more choices end-user has at his disposal for quick ticket creation.
All these design choices have been made keeping in mind the persona Service Point is built for i.e. end users, and to give them a more unified experience.
The short of it is that they used the best term they could to encapsulate everything which may appear there now and in the future. If you wanted your Service Catalog offering to match the idea of "categories" better then you could make them Service Offering Groups.