Can you run --textcat-multilabel but not --textcat? This is a known challenge due to the design (namely translating spaCy into Prodigy). As the error message includes, we typically recommend using --textcat-multilabel instead.
Alternatively, if you do want to use --textcat, I've written a script to convert the labels to run with --textcat instead:
I can understand this is a bit confusing (why use textcat-multilabel for a binary classifier?). Ines describes the design balancing act:
I hope this helps and let us know if you have further questions!