@Dhruv-22 I tested this and when I do something like follows, it works:

%sql
MERGE WITH SCHEMA EVOLUTION INTO main.yash.test_table
USING test_view
ON test_table.a = test_view.a
WHEN MATCHED THEN
  UPDATE SET c = test_view.c

 Instead of mentioning it as test_table.c, I just did c, and it worked.