Wacky taxonomy in wordpress

WordPress’ terms and taxonomies are spread over three tables in the database. Those tables are wp_terms, wp_term_relationships and wp_term_taxonomy – see the codex article on Database Description for more details. The parent relationship is part of the wp_term_taxonomy table, so you should inspect the differences between your environments in this table. wp_terms does not store such parent relationship information, so it’s no surprise that copying it didn’t change anything for you.