I have recently started learning about algebraic aspects of quantum field theory mainly using Witten's review (https://arxiv.org/abs/1803.04993) and Haag's Local Quantum Physics book. I am not able to understand how the implications from Reeh-Schlieder theorem are compatible with the replica trick used to calculate entropy in quantum field theories, for example the Cardy-Calebrese formalism (https://arxiv.org/abs/0905.4013, https://arxiv.org/abs/hep-th/0405152) to calculate von Neumann entropy of a region. In particular, Reeh-Schlieder theorem implies that we cannot single out degrees of freedom of a given region from its complement on a Cauchy slice (the reason being that there does not exist a Hilbert space factorization into degrees of freedom of the region and that of its complement), but this is an essential part of the Cardy-Calebrese formalism, or the replica trick in general. I maybe misunderstanding something but aren't these two in conflict with each other?
There are some nice discussions/questions on aspects of Reeh-Sclieder theorem and entropy calculations using replica trick:
Intuition for when the replica trick should work and why it works
The Reeh-Schlieder theorem and quantum geometry
Why is entanglement entropy in QFT infinite?
Local algebra of AQFT vs Bisognano Wichmann Theorem
Defining the modular Hamiltonian
The last of the above discussions come closest to the question I am trying to ask, but these don't address my question completely. When we consider the theory on a lattice the nature of operator algebra is different from that in the continuum theory (and this allows for a Hilbert space factorization is a heuristic sense), but how do we guarantee that the continuum limit of the discrete theory will take us to the right continuum operator algebra where there is no Hilbert space factorization? Any explanation about whether or not I am missing something in understanding the two notions would be helpful.