When you use a modified symbol instance to replace a symbol in the panel, all the linked symbol instances on the artboard are updated to reflect the modified instance.

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When you modify a symbol instance and then update the symbol in the symbols panel, all instances of that symbol in the document will update to reflect the changes made to the modified instance. This is because symbols in programs like Adobe Illustrator are linked to their instances on the artboard, ensuring consistency across the document.

When You Use a Modified Symbol Instance to Replace a Symbol