I have everything set up properly, I believe, but I can only see the banners inside the sub categories, not parent categories:
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I suspect a bug.
After setting a description to my parent category, if Hide if no description is enabled the banner won’t show up. If I disable this setting, the banner appears.
Can you test this too, and move the topic to Bug if you experience the same?
P.S: all official theme/components and plugins have their own tag here, so when you create a topic about it, you can add the correct tag to the topic. Example: category-banners (which I added to your topic) 
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Yes, I just tested and that’s the case. Weird…
Moved
I didn’t know that. Thank you!
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Ok now I’m not sure if this is acting weird or not…
I was experiencing it, but now that the option is ticked, I can see the banner on one of the categories (A), but not the other (B), but when I go to the sub category of B, it’s there…
I don’t know if this is a problem with cache or something? This component always seemed to take a long time to update after making changes.
Is there a way to clear the cache of Discourse itself without messing with the cache of the browser? Don’t know if this is even a thing, but…
I don’t know if this makes any sense or if it’s relevant, but I noticed that in the categories and sub categories where the “About this category” topic was pinned, it didn’t show the banner. This, with the option ticked.
But then I unpinned one of them and it didn’t make a difference, so again, I don’t know if there’s any issue with the cache…