Render and replace in premiere pro

[PUNEET RAWAT]

Does render and replace degrade quality to final output/export?

[R Neil Haugen]

That of course is totally dependent on what you choose for the codec/settings to be used.

"Digitial intermediate" codecs have been considered to be things like ProRes422 and up, many of the DNx variants. As they are both easy on the system for playback and hold full data depth.  And you should be able to go several generations before any visible issues appear.