Create New Midi Items pref breaks overdub/replace

[Coachz]

So when I have Prefs / Media / Midi set to
Create New Midi Items As Midi Items (in project, recommended)
I can overdub and replace midi fine.

When I have Prefs / Media / Midi set to
Create New Midi Items As .Mid files
overdub and replace midi doesn't work.

[Justin]

Overdub/replace recording does not support .mid files, which is why in project MIDI items are recommended by the preferences.