In general, you go to posts > categories in the dashboard and you can edit or delete categories there. The only category that cannot be deleted is the default category which is set at settings > writing. There has to be at least one category and each post must have at least one category assigned to it. The system requires that.
There is obviously some sort of major “UH-OH” going on at wordpress.com at the moment, and I’m sure staff are working on the problem, so you might not be able to delete or edit a category name currently. We’ll just have to be patient for a bit. If you look through the forum front page, you will find any number of different issues right now, so this is a system-wide problem.
I wish I had more to offer you, but that is the best we volunteers can do at this point. Hopefully staff will respond soon and let everyone know what is going on and when things will return to normal.
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