Hello,

You create this menu in Appearance > Menu, just drag and drop menu items as per your needs.

You can insert the Category element in any place in the Header, and besides, there is the Mega menu element allowing to place this menu in any place of the site: https://xtemos.com/docs/woodmart/header-builder/add-edit-builder-elements/ and https://xtemos.com/docs/woodmart/shortcodes-2/

Best Regards