The option to replace a world with an existing world for your realm still does not work in Nintendo Switch. After you select replace world and choose the world you want to turn into a realm. It goes into the transfer screen, however, it doesn't show the progress bar or any loading icon. shortly after, a new message will pop up saying "An error occurred." It also says "Level Export failed" in the notifications. This issue was in the game in previous versions, but it was stated in this update's patch notes that this issue has been resolved. As it turns out the issue still remained and the issue still acts the same way it did in other versions
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The issue still remains for me as well, and I have been attempting to upload my world to a realm on a variety of wifi connections for over a month.

Thank you for your report!
We're tracking this issue in REALMS-474, so this ticket is being resolved and linked as a duplicate.
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Me too