I don’t think it’s literally a search and replace but a part of the prompt that is hidden from the user and inserted either before or after the user’s prompt. Something like [all humans, unless stated otherwise, should be ethnically ambiguous]. Then when generating it’s got confused and taken it as he should be named ethnically ambiguous.
This is true and something to consider. There’s also no app for Crunchyroll which is personally a huge downside.
It’s still the best user experience and I seriously dread having to use other people’s TVs now. Even major players like Samsung are seriously lacking in comparison.