When using a Memorized Payee to update an existing transaction and I type the Payee in the Payee field the Memo and Category field remain blank or unchanged.
If I type the Payee in a new entry the Memo and Category fields are populated correctly.
Sorry, AFAIK, an entry from the Memorized Payee List can only be used to create a new transaction. To change existing transactions with Splits, edit each one individually. If the existing transaction has just one category entry, you can use Edit Menu / Find/Replace to select several transactions and change them all with one command.