What is meant by that, and how does it may affect the workflow? I tried to check the release notes of the SDK, but nothings written there about “replacement process”.
Support of the new plug-in replacement process of the VST SDK 3.7.8 has been added."
It has probably something to do with the moduleinfo.json, which allows developers to specify compatible classes (i.e. plugin IDs) for plugin replacement in the DAW (e.g. Kontakt6 could specify Kontakt5 and/or older Kontakt versions as compatible- if it can read the old state data in the project of course - and Cubase could automatically replace older Kontakt instances if they are not present anymore.
It is only useful for the end user if the developer supports it, though…