Tested on Windows Server 2012 R2.

ALWAYS add printers with Action set to Create.

NEVER set it to Replace (or set “Remove this item when it is no longer applied”), unless you want:

• All printers with Replace action to be removed and re-created at *every* group policy refresh.
• The default printer to be set to the printer that is at 1 in the Order of the group policy printer preferences at *every* group policy refresh. Even if the user selected one of the other printers from the same GPO as default.

Sources:

1. Personal experience.
2. Microsoft - Windows Server Forum - GPP TCP/IP Printers Uninstall/Reinstall durring background refresh
3. DeployHappiness - Best Practices for Group Policy Printer Preferences