as user A set category notification setting to watching
as user A set tag notification to muted
log out of user A account
log in as user B
as user B, write a test post in the category and containing the tag
**user A will be notified of post **
So it appears that category watching settings override the tag watching settings. I’d like to suggest reversing this so that if you have muted a specific tag, you will not be notified even if it’s in a category you are watching.
Or perhaps this can be an admin or user setting to serve different communities?
The behaviour is the same. It also works the other way. If you are watching a tag but mute a category, then you will get notified of a topic with that tag and category. Watching is stronger than muting.