I am unsure of what the issue is with the categories, the import function does not create categories.
In regards to the images, you must ensure all product images are placed in the media/import folder. Then when uploading ensure the images do not have a path preceding them in the CSV i.e:
When exported, within the CSV, the image value would be something like 'd/e/image1.jpg'
When importing, within the CSV, the image value just needs to be 'image1.jpg'
In response to your question:
Thanks @Paul Gemayel. How can I do this "When exported, within the CSV, the image value would be something like 'd/e/image1.jpg' When importing, within the CSV, the image value just needs to be 'image1.jpg'"
When exporting a CSV, you will see something like this:
As you can see the images have the values of their location in the Magento folder structure. When importing however, you first need to place the images in the media/import folder, then modify the CSV to look something like this:
From the changes I see you've made to your question, I suspect that you did not set the image, small image and thumbnail image correctly. It seems you have only set the thumbnail image.
I would also like to note that my response and examples here are based on Magento 1, with your changes to your question, I see your are referring to Magento 2. It works the same way, only that the field names are different i.e. image is now base_image.