Version 1.3.1 64bits (Oct 12 2022)
Libformat version 7.126
If "Export Catalog's Category to XMP Subject" is on and "Create XMP data" is on, writing the XMP data into the file confuses XnView's ability to correctly rotate the thumbnail of a Portrait-oriented image.
Effect: Thumbnail is rotated wrongly.
To reproduce:
1. Set "Export Catalog's Category to XMP subject" to on and set "Create XMP data" to on.
2. Browse to any folder containing an image in Portrait mode (EXIF Orientation = Rotate 90 CW)
3. Pick any category to assign this category to the Portrait-oriented image
4. Change to a different folder.
5. Return to the previous folder.
Actual behaviour (bug): Image thumbnail is rotated to Landscape

Expected behaviour: Thumbnail rotation should not change when adding XMP data to image file.
Workaround: View -> Rebuild Thumbnails corrects the thumbnail orientation