Coral Fans cannot replace replaceable blocks

The title says it all. Attempting to place a Coral Fan on a replaceable block will not place it.

How to replicate:

1. Place down a replaceable block (such as glow lichen or bushes)

2. Attempt to place a Coral Fan in the same space

Expected result:

The Coral Fan replaces the block in the space.

Actual Result:

The Coral Fan does not get placed.