My setting is different:
Category 1 – no parent – no post – name in both languages
Sub category 2.0 – parent Category 1 – no post – name in both languages
Sub category 2.1 – parent Category 1 – no post – name in both languages
Sub sub category 3.0.0 – parent category 2.0 – with post – name in both languages
Sub sub category 3.0.1 – parent category 2.0 – with post – name in both languages
Sub sub category 3.0.2 – parent category 2.0 – with post – name only in German
…
Sub sub category 3.1.0 – parent category 2.1 – with post – name in both languages
Sub sub category 3.1.1 – parent category 2.1 – with post – name in both languages
…
(Of course there are more categories and more posts per category as you can see in the sidebar. This is just an example.)
Settings – Languages – General Settings – Hide Content which is not available for the selected language. Checked
Show displayed language prefix when content is not available for the selected language. Unchecked
Show content in an alternative language when translation is not available for the selected language. Unchecked
Advanced Settings – Use Pre-Path Mode (Default, puts /de/ in front of URL). SEO friendly. Checked
Result: Sub sub category 3.2 is shown in the sidebar with empty link text, valid link and wrong number of English texts.
I tried your settings with my categories and posts and languages and it does not work for me.