I'm using FME Desktop 2020.2. I have added a CAT reader and set the boundaries and attribute names. I needed to change the attribute names so I used Update Feature Types - this was correctly reflected in the reader on the workspace, all of the new attribute values are displayed. However, if I go back to the Update Feature Types to make any other changes I'm shown the original attribute names and attribute types from when the CAT reader was added. It did not save the changes correctly.
I noticed an earlier post about this which was resolved in 2016, so not sure if this is similar or if there is something else I'm missing. Thanks for the help!


Set up the attribute positions and column names in the Parameters... window.
Save, and verify that the reader looks good on the workspace.
Then, go to Readers->Update Feature Types.
In the Parameters... window, here I've updated the column names, and included a previously-excluded column.
I get a confirmation about updating the feature types when I click OK.
Back on the workspace after the change, everything looks good.
But, if I go into the Parameters... window again from Readers->Update Feature Types, I see the parameters as originally saved, not my most recent edits.
If I save here it will revert back to the originally-saved settings. I will cancel here now and go through the right-click method in the Navigator. I still won't see the most recent changes (through Readers->Update Feature Types) but if I make edits here I'll see the 'Update Readers and Feature Types' radio button. I check this, and when I go back in using either method I see my changes as expected.
It's odd, I can't even get Readers->Update Feature Types to work with CSV files the way you're seeing. I've just tried this on 2020.0; I had been using 2020.2 with the same results. Not critical though since going through the Navigator is a better experience anyhow and doesn't seem to have any problems.