It's because you are looping through each category, so the context within the each
helper is your category. It's looking for an isEditing
property on the category, not the one you have in the controller.
Since you are passing the category in to the action, you can access it as an argument in the action's function, and set the property on the category instead:
actions: {
editingyeah: function(category){
category.set('isEditing', true);
}
}