when I change the view to English or French store view, there is no product in that category. Why aren't they inherit from All Store Views? how can I fix it?
Products added to the category while scope was "all store views". so it really should be in both French and English store now.
I did full re-index many times. I cleared the cache too.
see the bug in action [youtube]: http://www.youtube.com/watch?v=oE4h6H6PW78&feature=youtu.be
In "English" and "French" store views, new products not even show up when tried to add them again. They only can be added in "All Store Views" scope.
Magento version 1.6.2.0
I managed to get that working by disabling all products and reenable for store views added after products were added. To disable and reenable products for specific view, follow these steps
EDIT: before disable and enable your products back, I suggest to try reindexing and refreshing cache, from the System menu.