Guard members patrolling outside a Bass Pro Shops at the Memphis Pyramid were being escorted by a local police officer and posed for photos with visitors.
Twenty-three states have aligned with the Trump administration's stance that he has authority to bring in the Guard, while 22 back the district's position.
Texas National Guard members are at an Army training center in Illinois, sent despite a lawsuit and vigorous opposition from Democratic elected leaders.
Hegseth ordered more strict grooming and fitness standards and less training on subjects like the Privacy Act, cybersecurity and controlled information.