Fix - Double violation briefly visible when removing a disabled category from report

Author: dmkt9

src/libs/actions/IOU.ts

@@ -4660,10 +4660,15 @@ function getUpdateMoneyRequestParams(params: GetUpdateMoneyRequestParamsType): U
     ) {
         const currentTransactionViolations = allTransactionViolations[`${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${transactionID}`] ?? [];
         // If the amount, currency or date have been modified, we remove the duplicate violations since they would be out of date as the transaction has changed
-        const optimisticViolations =
+        let optimisticViolations =
             hasModifiedAmount || hasModifiedDate || hasModifiedCurrency
                 ? currentTransactionViolations.filter((violation) => violation.name !== CONST.VIOLATIONS.DUPLICATED_TRANSACTION)
                 : currentTransactionViolations;
+        optimisticViolations =
+            hasModifiedCategory && transactionChanges.category === ''
+                ? optimisticViolations.filter((violation) => violation.name !== CONST.VIOLATIONS.CATEGORY_OUT_OF_POLICY)
+                : optimisticViolations;
+
         const violationsOnyxData = ViolationsUtils.getViolationsOnyxData(
             updatedTransaction,
             optimisticViolations,