They are typically just shaved down to the profile you want, then re-shimmed to fit.
Yes it is semi-common common to re-weld pitted, or worn lobes when having cams re-ground. Or when having re-grond cams prepped for a racing duty engine. But you will pay a penalty for such work. Going rate is like $40-50usd a lobe.
When you re-weld cam lobes, you are suppose to use an extremely high nickle content filler. This will make it the machined surface very hard & durable.
That's what I remember about regrinding cams anyway, FWIW.