This issue still persists in Angular 1.2.22 so opened another issue for it 
here:
https://github.com/angular/angular.js/issues/8710


On Thursday, September 13, 2012 3:55:54 PM UTC-4, passelin wrote:
>
> I'm using AngularJS 1.1.0 and I'm trying to modify the template structure 
> of a directive to take some modifying attributes into consideration and I'm 
> using <elemArg>.replaceWith to do so as I want to replace the original 
> element.
>
> That works fine until I use that directive inside another directive that 
> uses ng-transclude. I suspect there's an issue related to the cloning done 
> by the transclusion but I may also be doing something wrong. 
>
> Here's a fiddle to illustrate the problem: 
> http://jsfiddle.net/passelin/Qt9Ey/
>
> Thanks
>
>
>

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