I am trying to make an excel file to basically highlight the file name in sheet1 among a data set if any name matches in sheet 2, using a code. Then distribute the highlighted files in a separate sheet and all the files in another sheet, using another code.
"Cutting" has three columns: File, Precision, & Date
"Category" has a list of File names.

Any file names in both "cutting" and "category" should be highlighted in "cutting."
And these items should be added to "level 1" and "level 2"
"Level 1" has file name and date.
"Level 2" has file name and precision.

Whey do the level sheets have multiple columns but only two fields? Normally a worksheet should only have the number of columns in which it has fields. For example, level 1 has file name and data. It would make sense that it should only have two columns. But you have ten columns, five sets of repeating fields. Unless you have a very good reason for doing it this way, it could cause all sorts of problems later on.

In level 2 in your after sheet, there are more items than were marked as highlighted. So does this mean that you want all the items from cutting moved into level 2?

In the cutting sheet, you have two buttons: Highlight and Distribute. What do you want these buttons to do?