IEEE Copyright and replacing previous ArXiv/TechRxiv versions
When referring to a preprint being replaced, it is understood that a new version will be generated. Most/all preprint servers do not generally permit editing existing versions in order to maintain a clear timeline.
Even though older versions remain accessible, readers would view the latest version as the most up-to-date version to refer to for future use, so this is unlikely to be an issue.
This interpretation also agrees with the terminology used by arXiv.