Kingdom Hearts: Chain of Memories uses a decidedly action-based combat system, and, as such, it makes more sense to categorize it as an Action RPG, especially with the Mega Man Battle Network games' categorization as such establishing precedent for quirkier action-based battle systems still "counting" as Action RPG gameplay.
This hack enables you to save your game normally with SRAM and you no longer require a special save state to access Wily Tower. The original game used Serial EEPROM which few emulators support. This makes it use the much more common battery backed SRAM method.
Note that the base ROM used for patching should be in BIN format, not SMD.