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It means that in order to update the Pulumi resource, the provider resource had to be deleted and re-created. Not all resources allow all properties to be updated.

I'm not aware of any definition of these terms in this context, but you may be able to infer all the meaning by reading this page: <https://www.pulumi.com/docs/intro/concepts/resources>

<@U012UJTT55M> does this relate at all to the deleteBeforeReplace option?

That's relevant. With that option, any time there's a _delete-replaced_ action, the delete happens _before_ the create. When possible, Pulumi prefers to create before the delete. For things like security groups, this allows 100% "uptime". When you delete things like before creating their replacements, then you briefly lose access (or whatever functionality they provide).