@effess: Looks like you have edited files inside catch-kathmandu-pro theme directory. As when you update the theme, all the files and codes inside catch-kathmandu-pro theme directory will be reverted back to original.
So, you need to change the Featured Content from “Appearance => Theme Options => Featured Content”. Then in Featured Content options box, you need to select Content Type, enable content, and so on. Then if you choose Image Content, then you need to upload image and content from “Featured Image Content Options”.