I think this replace functionality is supposed to be used if you offset an entity then later it's parent referenc dies then during sketch edit you should be able to click on the failing offset relations and select the new desired reference.  I saw in the menu when you double click the failing relation there is a 'replace' option but it doesnt' seem to work.  Anyone master this yet.  if so can you give me an example or some suggestions?

Thanks,

Kevni