Quote I noticed that the latest version of 365 has removed the Color Replacement effect. Am I missing something or has it just been removed?

I'd assume you are talking the "Replace Color" Fx, yep that was one of many removed back in May in a PD365 push. No reason ever provided, about 25 Fx were removed for some reason, based on forum feedback, many of which people used, just gone, no sunset release guidance, nothing, just removed. A later PD365 update added a few back with a note of improved, what was improved not yet identified in the forum.

Jeff

Even though those FX are not displayed, their functionality is actually still there. See this post for a project that has all 25 of the originally missing FX available for use