I would say it will most certainly replace software developers. There is a subtle difference between these terms.
Software developer typically is the one which builds typical CRUD app, front-end, back-end with database and something around that. Their main job is to make the software to apply clear business requirements on software level, while the software itself is not likely revolutionary. Or they are not the responsible ones to make it revolutionary. They provide code in demand.
Then there are engineers that may apply math problems to software and optimise and develop new algorithms, compilers etc. The software itself might be revolutionary and the business.
Sometime in the late 2000s/early 2010s people started saying, oh, a programmer means you just type in the code to implement requirements, a developer actually understands and can create the requirements to meet the business needs! Like that wasn't what people were already doing for decades and calling "programming".
edit: I guess it was offshoring that encouraged the self-marketing as a "developer" (not one of those programmers you can get anywhere for cheap) just as AI is doing the same thing with "engineer"