Today, one of my Insteon KPLs failed and I needed to replace it. This is something I have done successfully many times before. When I went to update the configuration in Admin Console, I discovered that the right-click menu for the old device is missing the "Replace <device> with..." command. It is supposed to be immediately below the "Restore Device", but it is just not there.

Upon further investigation, I discovered that this problem occurs for ALL existing devices in my system!

However, the "Replace <device> with..." command IS present for the new device that I just installed and linked. Of course, having it on that device doesn't do me any good.

Thinking back to recent change that I had made, I remembered that I moved all of my Insteon devices from My Lighting into a Devices folder in Admin Console. (This was recommended in these forums to allow easier navigation of folders and scenes in UD Mobile.)

So, I tried removing the device I was trying to replace from its folder, so that it reappears in My Lighting. Sure enough, the "Replace <device> with..." command reappeared for that device.

It appears that it isn't possible to replace a device that is in a folder. This seems like a bug to me. But if there is a reason for it, perhaps the "Replace <device> with..." command should still be present in this situation, but leading to an alert saying that it's necessary to remove the device from its folder before replacing it.

It is no different than deleting a device you have to move it from the folder first.. 

@eataft answer given by @tlightne is correct. 

From the wiki:

https://wiki.universal-devices.com/index.php?title=ISY-99i/ISY-26_INSTEON:Replacing_a_Device

 

Right click the device you need to replace. If it's in a folder the option you want is "Remove from Folder"

Then you can right click on it once it's in the root and will have "Replace {device name} with   >".