Mute category to mute all children categories

I assume that subcategories should inherit mute state from main category only if nothing was explicitly set before. So if I set B to watching before, then when I mute A, only C will be muted.

Mute is just one example, but how about other notification statuses?

Should we be consistent, and when decide to watch/track A, shall we watch/track B and C or implement that solution only for mute?