Is it possible to update part of a string within a documents

You are on the right track with $replaceOne. The complexity comes from have to work inside an array of array.

Simple $replaceOne example:

mongosh> c.find()
{ _id: 1, t: 'Buildings & Contents' }
mongosh> c.aggregate( { "$addFields" : { "result" : { $replaceOne: { input: "$t", find: "&", replacement: "and"} }}})
{ _id: 1,
  t: 'Buildings & Contents',
  result: 'Buildings and Contents' }

With complex array like yours you have to rely on $map.

When publishing documents it is best when we can cut-n-paste directly into our systems. To do so follow Formatting code and log snippets in posts.

Here is your redacted document. It will be easier to others to pitch in:

{ _id: 1,
  section: 
   [ { section_idx: 2,
       premiumDetails: 3,
       systemNotes: 
        { note: 
           [ { noteDesc: 'FVEE at night exclusion added to Buildings & Contents cover.',
               noteTypeKey: 69,
               noteStatusKey: 3 } ] } } ] }
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