Last year it was reported that Google had stopped replacing Nexus 5X units on Project Fi. This means that users who had a damaged unit and wanted to replace it were no longer able to do so. Instead it seems that affected users were simply given $100 in Google Store Credit that they could use to purchase something else.
However the good news is that according to a report from Android Police, Google has started to replace defective handsets with a newer model instead in the form of the Moto X4 Android One. While the Moto X4 might not necessarily be a top-of-the-line handset, it is considerably newer than the Nexus 5X (Google stopped making Nexus handsets about 2 years ago), so in a way it is very much an upgrade over the Nexus 5X.
While phones being discontinued is pretty normal and does happen all the time, what probably irked many Project Fi customers with the Nexus 5X is the fact that despite paying $5 a month for Device Protection, they were being “robbed” of getting a handset replacement, plus the $100 credit is much less once you have taken into account the deductible.
However with the Moto X4 Android One being offered as a replacement, hopefully it will appease many Project Fi customers.