Its not just replacing mods though. Take the issue that happened with that snack sharing subreddit. The current mods held it for 10+ years. They built several tools that automated verification and rating people who shared with each other and it prevents a LOT of drama and scams. Then reddit replaced them because of the protest. But what about the automated tools that they personally made for "their" sub. The owner of those tools took them down. The new mod put them back up. They will die on the 30th anyways because they wont make the API requirements and if they are forced to stay up byt he new mods then the person who will have to pay reddit for the API usage is no longer the mod there.

This is not a unique situation either. Tons of people made auto moderation bots and tool over the past 16+ years. Most of those tools break today and if the mods are replaced then those tools are stolen from the owners. If the owners remove the tools reddit sees that as protesting and removes the mods.

It's going to be a train wreck and a legal nightmare.

Even in a perfect world you are replacing mods that know the communities and have created them and worked on them for years with a new set of mods with no attachment or experience running those communities.