Why did the entire PDSE loadlib was restored when I only did member level restore?
The PDSE loadlib was backed up by the Disk DFDSS path which is unable to perform member level restore. If you want member restore capability, you need to instruct Disk to back up PDSE loadlibs with the IGWFAMS path by not specifying both "*" or "PDSE" for sysparm USEDSSIO.