cmds/service: Fix categoryCount

By introducing a new 'categoryCount' in an inner scope, and only
incrementing it within this inner scope, we're assured that when
we leave this scope, our "if (categoryCount > 0)" will always
be false, not matter how 'categories' we added.

This almost certainly is not the intention of this code, so we
removing the inner scope declaration of the variable, so that
'categoryCount' will be updated.

Bug: 28288587
Test: TreeHugger
Change-Id: Ie592a02c5baa1eb5527ddd8d726e3b1181d937fd
Merged-In: Ie592a02c5baa1eb5527ddd8d726e3b1181d937fd