"Category page with intro" not working as expected

I am having the same issue as Rafael with the “Category page with intro” not working as expected. I just started creating the site and am using Parabola. I like the theme so I’d love to get it working properly.

Example: http://www.bcuzbookz.com/

My test category is “Award Winners” with a child category of “(Romance) RITA”.
When I click on “Award Winners” it takes me to the category page at http://www.bcuzbookz.com/award-winners/. The intro shows up just fine but the posts that are displayed are full (standard format) posts even though in POST EXCERPT SETTINGS I have ARCHIVE AND CATEGORY PAGES set to show Excerpt.

When I select Award Winners from the Category widget in the right sidebar, it takes me to http://www.bcuzbookz.com/category/award-winners/ and displays the posts as excerpts (but with no intro, of course).

How do I get the posts on the “Category page with intro” to show as excerpts like they do on the normal category page? Any hints/help/pointers will be appreciated.