Walls will act oddly, where it will randomly set the "connection" state of a wall block instead of retaining the original state.

Stairs will rotate to a default orientation instead of retaining their current state.

I tried all kinds of tool config settings, but I was not able to achieve the desired result no matter what I did. The replace feature with the palette is so powerful when making builds, so for it not to work on stairs or walls is a bummer.