I just now logged in and re-equipped all my fighters and my leaders with melee weapons. It shows them as using melee weapons in the Survivor window, but when I played an outpost defense, they were still equipped with m-24s. What's more, no ammo was used in the attack-still had the full starter ammo supply left over when I finished.
The survivor screen has two loadouts, an offensive loadout and defensive loadout, you have to click the button on top to toggle between the screens
As for the Ammo, when the defensive setup is used. no ammo is expended. Defensive setups are triggered for zombie attacks and defending against a raider, hope this helps.