that's correct
every database has it's own icon, you define. All points in category have ability to have defined also own icon. When there is no icon defined, than these points takes icon from category. When is defined (you define manually later, geocaches or usually KML files with style tag - your case) own icon, category icon have no influence on this. You may check your KML file. It will for sure contain <style> attribute at points that will define own icon