replace footage greyed out - "converted" version replace best practices

prrpro 25.2.1 build 2
mac 15.4

open an older project - with aep files inside of it. select aep file "file". edit original
"this file is from older version - do you want to convert to new version" - yes. (save as "file_converted")
edit new version - save.

select aep "file" in premiere pro - clip/replace footage - but replace footage is greyed out.

how do I replace the footage when it is greyed out?

Is there another best practice for update older aep files when i am forced to convert them?

thanks!