STUFF function is used to insert a string into another string by deleting some characters specified whereas REPLACE instead of replacing specific characters, replaces existing characters of all occurrences.
Stuff function Syntax:
STUFF (character_expression , start , length , replace_expression )
Example
Select Stuff ('QueryHome', 3, 3, 'abc')
This query will return the string "QuabcHome".
Replace Function Syntax:
REPLACE ( string_expression , string_pattern , string_replacement )
Example:
Select Replace ('abcabcabc', 'bc', 'xy')
This query will return the string axyaxyaxy.