How to clear retention category metadata when propagating a move to a record folder?

We have encountered an odd problem.  When we move a record from a retention category to a retention folder by using propagate, the record retains the metadata value of the retention category that it "used" to be in.  Now it "exists" in both the retention category and record folder.

If this explanation doesn't make any sense.  Lets take the example of moving RECORD1 from CATEGORY1 to CATEGORY2/FOLDER2 through propagation.  At this point RECORD1 is only displayed under the CATEGORY1 retention category.

RECORD1 metadata prior to propagation

Retention Category: CATEGORY1

Record Folder: NULL

RECORD1 metadata after propagation

Retention Category: CATEGORY1