Setting up the FAQ subcategories
Apparently upgrading, your installation does NOT assign the admin user (or its group) the privileges to manage FAQs.
You have to go to:
Admin panel -> Staff -> Groups
Click on the group that you want to have privileges (mine was called Admin)
Enable "Can Manage FAQ" (near the bottom)
NOTE: "Can View Staff Stats" was also disabled in my admin group.
Once you have done do the following:
Staff panel -> Knowledgebase -> Categories
Click Add New Category
Select Public or Private (internal)
Enter a Category Name
Enter a Category Description
Click Add (at the bottom)
Click on Knowledgebase (at the top) and the category you made should show up.
Click on it.
You should now have the ability to Edit Category, Delete Category, and Add New FAQ. Enjoy!