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According to your explanation,
Home Office is saying that they will send you your replaced Biometric Residence Permit. But with same terms and conditions which you had on your stolen BRP.
you have asked to change terms and conditions with your replaced BRP. SO, your application is void. it can not be changed terms and conditions on this replaced BRP..
if you want to change terms on the BRP then you need to apply for new application.
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please send a copy of your application and letter which you have received from Home office.
please send copy of home office letter
According to this letter you have applied an application on 6 of may in which you have asked transfer of conditions of the BRP and send new replaced BRP.
Home Office has replied to you that your application has been voided.
what is void meaning?
If an application is incorrect or was entered in error, you can void it. Voiding an application will remove it from the queue and no further action can be taken on the application.
Home office has explained in last line that they will refund your fee regarding this application.
Moral of the story is that you have done some errors in your replacement card application. Home Office is not working on your application any more. they will refund your fee. your will have to file new application for replacement of your BRP.
i hope it will help you to under stand.