Not correct. The 737 can be equipped with fail operational autopilots and a very nice HUGS too. So you can do autolands with automatic roll out or do manual CAT II/III landings with manual thrust, your choice.
Even the classic can have both at the same time (though not fail operational with automatic roll out), did my typerating on a simulator equipped with a head up guidance system and tried some manual cat III approaches, works like a charm.
However i am not sure you can mix both operations, as we never officially trained on the HUGS i do not know if there is a procedure for late switch-over. But even on the normal 737 (without HUGS) you are normally trained to take over and land manually after the nose up trim has been applied.