Can you update record collection elements via the Loop Element in a loop?

I have a collection of records (not yet created) in a record collection variable. I have a loop where I want to match this record with another and update it with a value from the other record.

In the loop element, there is the following text:

To use the current item in other elements in the loop, use the API
name of the Loop element. Example: if your flow iterates over accounts
with a Loop element named "My_Account_Loop" you can reference the
current item from that loop element. Just start typing
"My_Account_Loop" and select "Current Item from Loop My_Account_Loop".

Using My_Account_Loop.FieldName certainly lets me access values from the current element, but can I update the current record’s values via My_Account_Loop.FieldName ?

I ask because I’m attempting to do this yet the value I set in My_Account_Loop.FieldName is not there later in the flow. The value is present immediately after setting and before another loop cycle.

Do I have to take my record collection elements out of the collection they’re in, update them, and add them to another collection for the update to take effect?