Solid Edge Design Configurator creation failed with "Action 'Replace Model' unavailable for this license" message

In this scenario, Solid Edge Design Configurator fails at Model Configuration creation with the message:

MDL= yourpart.par
Action 'Replace Model' unavailable for this license.

This can happen if the Design Configurator creation step is executed with the "Basic" Licensing setting. 

There are a couple of ways to check and switch the current Licensing Setting in Design Configurator's "Tool and Settings" drop-down menu.

Select ‘Switch License’ for a direct way to change the License to Standard or Advanced.

Alternatively, select 'Settings' to choose the required License type using the larger dialog.