When using the replace actor feature in the editor, the new actor is not placed in the folder location of the actor that was replaced. As in the example above, the Actor2 that replaced Actor1 is not placed in the folder that Actor1 was in before being replaced.
Result: The Actor2 that replaced Actor1 is not placed in the folder that Actor1 was in before being replaced
Expected: The new actor would be placed in the same folder location as the actor it placed
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-48147 in the post.