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…
even I am facing Category banner visibility issue, I too have similar structure of Category and sub-category and in few cases , I am able to view the Category Banner both Parent an child , and for few it is visible for Parent not for child…changing to pin/unpin is not making any difference in my case…also compared with those where it is working fine…Unable to make any difference in the configuration settings…Not able to conclude what makes visible/non-visible for few cases. Any solutions worked for you. Please do let me know