Hopefully the samples are to the point enough to show the issue, when ran.

In a @setup use, we were looking to replace a field with a dynamic value (variable). While this works in a basic scenario, usage in the @setup block fails with an error as follows. Is this expected functionality or a bug?

* replace testGenerator 
|   token   |value! |
|   replaceVar  |replacementVar |
|   replaceString   |'replaced String'  |

expression error (replace string values need to be within quotes): js failed:
>>>>
01: replacementVar
<<<<
org.graalvm.polyglot.PolyglotException: ReferenceError: "replacementVar" is not defined
- <js>.:program(Unnamed:1)

Here is a code sample showing the replacement of the variable working in the single scenario, but failing in the outline and @setup usage.

Feature: scenario outline using a dynamic generator function
Background:
  # setting url
    * url 'https://www.google.com'

    * def replacementVar = 'this was a replaced variable'

    * configure continueOnStepFailure = true

  @setup
  Scenario: setup of data
  # creating json data and casting as string for replacement
    * def testGenerator = [{ name: 'test replaceVar', replaceVar: '<replaceVar>'},{ name: 'test replaceString', replaceVar: '<replaceString>' }]
    * print 'testGenerator-initial-',testGenerator

  # printing current generated data value
    * string testGenerator = testGenerator
    * print 'testGenerator-string-',testGenerator

  # replacing data in generated data
    * replace testGenerator
    | token         | value!            |
    | replaceVar    | replacementVar    |
    | replaceString | 'replaced String' |

  # converting generated data back to json object for use in scenario
    * json testGenerator = testGenerator

  # printing updated generated data value
    * print 'testGenerator-json-',testGenerator

  Scenario Outline: Outline test name: ${name}
  # printing initial name value
    * print 'name-',name
  # printing initial replaceVar value
    * print 'replaceVar-',replaceVar

    Examples:
    | karate.setup().testGenerator |

  Scenario: Scenario test
  # creating json data and casting as string for replacement
    * def testGenerator = [{ name: 'test replaceVar', replaceVar: '<replaceVar>'},{ name: 'test replaceString', replaceVar: '<replaceString>' }]
    * print 'testGenerator-initial-',testGenerator

  # printing current generated data value
    * string testGenerator = testGenerator
    * print 'testGenerator-string-',testGenerator

    # replacing data in generated data
    * replace testGenerator
    | token         | value!            |
    | replaceVar    | replacementVar    |
    | replaceString | 'replaced String' |

  # converting generated data back to json object for use in scenario
    * json testGenerator = testGenerator

  # printing updated generated data value
    * print 'testGenerator-json-',testGenerator