You know that a new Join of a ZWave device does the magic of a join but uses the next sequential unused Node ID, right?
A Replace does everything the same BUT reuses the Node ID. There's no need to do a Swap because the new device becomes the old.
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I see; then it makes sense to use it. I've asked because I created a virtual placeholder and swapped all the apps to use it before killing the buggy dimmer.
The "Replace" failed, and now it is stuck in the failed state even after a hard reboot (shut down + 30 seconds unplug):
I've added the new device separately and swapped in apps, so everything is working.
The only problem I can't remove the old one, the "Remove" button spins and then reappears 
Stick?
the REPLACE function isn't used by enough people to get some of the display confusion resolved. If you were able to add the device as a new device, new NodeID, then you should be able to replace, because for the Join part of the process, it's identical. The only difference is what NodeID is provisioned.
Replace is NOT Running. Occurs with both success and failure. WOW right?? It just means it's done. I ignore the "status:" line. When I see it's not running and I've seen the device's LED flickering as if it was joining, then I conclude "NOT running" == success.
It doesn't matter now, you've solved it the other way. 
But I suspect it actually worked 
I have a Dual Relay module that is stuffed inside a wall box, behind two switches in the Bathroom. That device quit working earlier this month and I did the REPLACE dance on it. I can tell it worked because the fan came on. I then went to the tab on my tablet with the device info page and yep, I could control the fan. The same with the light on it's device info page. As I've mentioned, I do that REPLACE thing several times a month, normally, and far more often when development requires. It's possible I'm the most prolific user of the feature in the Community.. and as such, I don't pay as much attention because in my mind, it works most of the time.
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In my case, it was not possible to try it again, as it was stuck in this NOT Running/failed mode every time I clicked REPLACE on the details page. 
You may possibly still be able to power up the old device and run an exclude to get rid of it, if not then yes you would probably need a USB stick to remove it.
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