I was not able to find documentation about this property in this page.
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Thank you for your post and for bringing this to our attention. The documentation team are going to get this added.
To clarify that When True, Snowflake replaces invalid UTF-8 characters with the Unicode replacement character. When False (default), the load operation produces an error when invalid UTF-8 character encoding is detected.
I hope this helps. have a great day!
Joe