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Can anyone provide some insight on why changing tags on an EC2 Instance would necessitate a Replace instead of an Update when running `pulumi update`?

That certainly doesn't sound expected. Does `pulumi preview --diff` show any other changes?

I just tried this on one of my stacks and don't see the same behavior

```aws-ts-webserver % pulumi preview
Previewing update (demo):

     Type                 Name                        Plan       Info
     pulumi:pulumi:Stack  demo-aws-ts-webserver-demo
 ~   ├─ aws:ec2:Instance  web-server-3                update     [diff: ~tags]
 ~   ├─ aws:ec2:Instance  web-server-1                update     [diff: ~tags]
 ~   ├─ aws:ec2:Instance  web-server-4                update     [diff: ~tags]
 ~   ├─ aws:ec2:Instance  web-server-2                update     [diff: ~tags]
 ~   └─ aws:ec2:Instance  web-server-0                update     [diff: ~tags]

Resources:
    ~ 5 to update
    11 unchanged```

Sorry for the delay in responding. I'll check it again shortly, to see if the behavior is still occurring, and I'll take a look at `pulumi preview --diff` as well. What version of Pulumi are you using?