Dental schools do not "calculate GPA w/ grade replacement."
I looked up the regulation you are mentioning on the ADEA AADSAS website- That sentence that you quoted is explaining why ADEA AADSAS GPAs may differ from that of your undergrad. college. If you go to a college that disregards the old course when calculating your GPA, your AADSAS GPA will be different from your college's overall GPA since AADSAS WILL take the old course into account.
Here is the full regulation:
"
Factors that may result in a GPA calculation that is different from the transcript include the following:
- Many colleges/universities count only the new grade in repeated course(s) in GPA computation. ADEA AADSAS counts the previously earned grade and the new grade. For example, if you took Introduction to Biology in fall 2012 and earned a grade of C, then retook the same course in spring 2013 and earned an A, ADEA AADSAS would use both the C grade and the A grade to calculate the GPA."