Done! ??
I found a code for a query which lists only one post of every child category in a parent category.
I modified that code to display the child cat name with link, the post thumbnail with link to the child cat and the cat post count.
When that worked, I put the counter back in to wrap each entry in one of the two different divs.
I removed the automatic post thumb linking from my functions.php to link the thumb to the cat and not the post, but that is ok for me. I now link my post thumbs manually ??