could it be that you just have to re-select the correct category? I am asking because it seems the category Crafts - Embroidery - Other Embroidery
does no longer exist. Instead you have to select Crafts - Needlecrafts - Embroidery - Other Embroidery
I tried it here (with eBay USA) and was able to select a condition.
I previously was referring to eBay USA.
However, I just tried it with eBay UK and the same category is available there:
I can select a condition, too.
If it still doesn’t work for you could you try to select “update category data” from the sprocket icon in the category browser? Maybe you current category data is still out-dated.