They are, but you need to set them up twice,
one in the module params, one in the menu item's params.

Backup and install the 2.7 DEV version of K2 which can be found here: getk2.org/assets/get/

Well...I installed the 2.7 DEV.
Now then I try to go to the link go my K2 main page of categories, I get redirected to my home page.
I do not believe I made any changes. So, it might be the result of the update to 2.7 DEV. Now, lucky me...forgot to back up my site...but that is my problem.

Looking around, I do not see that something was disabled. But that is how it seems to be acting.

ws.paynecreativesolutions.info/administrator/index.php/design_catalog