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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.

Thanks @little-cartoon-10569

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).