<p dir="auto">The legacy 0.10 docs mentions having only 1 root element as a restriction to <code class="notranslate">replace</code>.<br>
Current version (0.11) seems to have <code class="notranslate">replace: true</code> work for components with multiple root elements, but v-with breaks with no warning.</p>
<p dir="auto"><a href="http://jsfiddle.net/r4h8p5jz/" rel="nofollow">doesn't work - http://jsfiddle.net/r4h8p5jz/</a><br>
<a href="http://jsfiddle.net/r4h8p5jz/1/" rel="nofollow">works - http://jsfiddle.net/r4h8p5jz/1/</a></p>
<div class="highlight highlight-source-js notranslate position-relative overflow-auto" dir="auto" data-snippet-clipboard-copy-content="var ComponentA = Vue.extend({
    //template: '&lt;div&gt;{{bar}}&lt;/div&gt;', // this works
    template: '&lt;div&gt;{{bar}}&lt;/div&gt;&lt;div&gt;&lt;/div&gt;', // this doesn't
    replace: true
});

new Vue({
    el: 'body',
    template: '&lt;component-a v-with=&quot;bar: foo&quot;&gt;&lt;/component-a&gt;',
    data: {
        foo: 'Test Test Test Test'
    },
    components: {
        'component-a': ComponentA
    }
});"><pre class="notranslate"><span class="pl-k">var</span> <span class="pl-v">ComponentA</span> <span class="pl-c1">=</span> <span class="pl-v">Vue</span><span class="pl-kos">.</span><span class="pl-en">extend</span><span class="pl-kos">(</span><span class="pl-kos">{</span>
    <span class="pl-c">//template: '&lt;div&gt;{{bar}}&lt;/div&gt;', // this works</span>
    <span class="pl-c1">template</span>: <span class="pl-s">'&lt;div&gt;{{bar}}&lt;/div&gt;&lt;div&gt;&lt;/div&gt;'</span><span class="pl-kos">,</span> <span class="pl-c">// this doesn't</span>
    <span class="pl-c1">replace</span>: <span class="pl-c1">true</span>
<span class="pl-kos">}</span><span class="pl-kos">)</span><span class="pl-kos">;</span>

<span class="pl-k">new</span> <span class="pl-v">Vue</span><span class="pl-kos">(</span><span class="pl-kos">{</span>
    <span class="pl-c1">el</span>: <span class="pl-s">'body'</span><span class="pl-kos">,</span>
    <span class="pl-c1">template</span>: <span class="pl-s">'&lt;component-a v-with="bar: foo"&gt;&lt;/component-a&gt;'</span><span class="pl-kos">,</span>
    <span class="pl-c1">data</span>: <span class="pl-kos">{</span>
        <span class="pl-c1">foo</span>: <span class="pl-s">'Test Test Test Test'</span>
    <span class="pl-kos">}</span><span class="pl-kos">,</span>
    <span class="pl-c1">components</span>: <span class="pl-kos">{</span>
        <span class="pl-s">'component-a'</span>: <span class="pl-v">ComponentA</span>
    <span class="pl-kos">}</span>
<span class="pl-kos">}</span><span class="pl-kos">)</span><span class="pl-kos">;</span></pre></div>
<p dir="auto">See this: <a href="http://jsfiddle.net/qm2wqg8u/5/" rel="nofollow">http://jsfiddle.net/qm2wqg8u/5/</a></p>
<p dir="auto">If replace set to true, and a multi root template could cause the param can't pass into component. In this case, the comment block cause the problem.</p>