[Plugin: FeedWordPress] Link Issues

Hello,
I have 2 different issues that I need assistance with:

1. I would like the blog posts getting pulled in from my rss feed to be readable within the site and not have my visitors be directed to the rss source website when the title is clicked. I expected the “Permalinks point to the local copy on this website” option to take care of that but it’s not working. Am I missing something?

2. The post title that links to the rss source site does not include the category of the posts, which causes a “page cannot be found” error when a visitor clicks to view a post. The post link is always https://www.mysite.com/blog/post-name instead of being https://www.mysite.com/blog/category/category-name/post-name.

Any thoughts on either issues?

https://www.ads-software.com/extend/plugins/feedwordpress/