If I understand what you are doing…
If you have categories set to load at “/category-name/” and a category named “/movies/” and a custom post type set to load at “/movies/” you’ve got conflicting elements. The rewrite rules are competing. That is going to be problematic. If you set has_archive to false when you register the post type, WordPress will not create the “/movies/” archive page and that might get you a step forward (though you won’t have an archive page for the CPT), but you are still mixing category URLs and custom post type URLs so I’d expect there to be other problems.
My answer is going to be “I doubt you will ever get this working right and even if you can approximate something functional you probably shouldn’t”.