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The loading and saving of layer properties is a nice feature. It saves layer names but, on reloading displays the names in the layers panel but does not update the layer name in the layerinfo objects. Is this the expected behavior?
Yes, it is. But I need to explain.
The layer name is a database feature. A layer inside the database is given by either layer/datatype numbers (GDS, OASIS) or a name (CIF, DXF, LEF/DEF, Magic). So these are the coordinates of a layer.
The layer properties tell KLayout what layers and how layers are displayed. The layer properties specify layer descriptions so you can give a layer a nice description such as "Metal 1". The layer properties hold a reference where to take the information from the database - this is the layer number/datatype number or layer name stored inside the layer properties entry.
So when you change anything on the layer properties, you do not change the database. You can change where the layer takes the data from, but this is just a lookup information. You can change the description, but this will not change the database, only what is shown in the layer list.
Layer properties can do much more like providing different views, combining multiple layouts, controlling hierarchy display, filtering etc. Think of the layer properties as a drawing specification for information inside the database. But the layer properties/database interaction is read-only.