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jaroslavqwerty, I don't think the application would flood the system with popups if it would always return .replace. The system popup will only appear if the system extension last requested on the system is of a different version to the one you are requesting now. The delegate method wouldn't be called anyway if the versions are the same, as mentioned in the method documentation.
I always return .replace in my extension. In my experience, it seems that nothing happens to the currently loaded extension if you make more activationRequests after the first one.
Another reason you might want to always answer with .replace is that an application can uninstall the corresponding system extension loaded on the system only if it has the same version as the system extension embedded in the application. So choosing not to replace the extension might mean you end up without any way of uninstalling the given system extension (as far as I can tell).
If you are seeing a different behaviour as described in this comment, please make sure that developer mode is turned off (run systemextensionsctl developer off in a terminal)