I'm assuming Atrioc is a friend of yours. He probably brought it up because Scar or Toph brought it up today while commentating Armada vs. Plup at Battle of the Five Gods.
As a PM player I'm more knowledgeable about Brawl's Transform, which completely removes Sheik/Zelda from the match and then loads up the character files for the other. This leads to transform having no time duration; it has set frame data for the startup and endlag, but the loading time in-between can vary from almost instantaneous to several minutes depending on the processing power of the Wii/Computer, or if the character files being loaded are already present
(e.g. if a Zelda and a Sheik were to team together and the Zelda transformed, it wouldn't take the game too long since Sheik's character files are already being used in another player slot). In this scenario, it would make perfect sense for Transform to refresh their stale move counters, since the game is loading up a fresh "character" in every instance.
Melee transform differs from Brawl/PM transform though. Unlike in Brawl/PM, iic Melee transform has set frame data, meaning that it isn't affected by factors like the processing speed. Can't confirm whether or not that means the game has both characters pre-loaded from the start of each game - which has always been my guess, but that would make the stale move counter refresh unlikely. I would take Scar and Tophs' word for it though, since they said they were told from...idk I forget, someone well-informed.
Kadano
...?