Find and replace
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Replaces every match as you type. Plain text by default, with regular expressions available by typing "on" in the regex field.
How to use the find and replace
Plain-text mode escapes your search string, which is the behaviour people expect and most tools get wrong: searching for a full stop should find full stops, not match every character as a regex wildcard would. Turning regex on gives you the full pattern language, with capture groups available in the replacement as $1, $2 and so on. Matching is case-insensitive by default. One deliberate behaviour worth knowing: an invalid regular expression leaves the text unchanged rather than showing an error, because you are typing the pattern one character at a time and every incomplete pattern would otherwise be an error state.
Questions
No, matching ignores case by default.