Replacing Baseline using API

I am trying to replace a baseline of a component via API. Unfortunately it is not working.
I am using

public void replace(IWorkspaceConnection workspace, IBaselineConnection sourceBaseline); 

of

IWorkspaceUpdateOperation class.

Here is my scenario:
I have a stream "ComponentContainer_Stream" with following components
- Comp1 - (1:InitialBaseline 2:bl1 3:bl2)
- Comp2 - (1:InitialBaseline 2:bl1 3:bl2)
- Comp3 - (1:InitialBaseline 2:bl1 3:bl2)
with different baselines as mentioned above.

My Use Cases are as follows:

Use Case #1
- A Stream "Stream_Target" (Empty, have no component within it)
-  I want to add Comp2(bl1) in to Stream_Target

Use Case #2
- A Stream "Stream_Target" has Comp2(bl1)
-  I want to replace Comp2(bl1) with Comp2(bl2) in Stream_Target

Use Case #3
- A Stream "Stream_Target" has Comp2(bl2)
-  I want to replace Comp2(bl2) with Comp2(bl1) in Stream_Target


Here is my Code (To make it readable, I have removed try catch blocks)

private static String _repository ="{repository}";
private static String _projectName = "{Project name}";
private static String _user = "{userId}";  
private static String _pwd ="{pwd}";
private static String _stream = "{Stream name}";

private static ITeamRepository teamRepository;
private static IWorkspaceHandle wsHandle;
private static IWorkspaceConnection wsConn;
private static IWorkspaceManager wm;

//team repository and login
teamRepository = TeamPlatform.getTeamRepositoryService().getTeamRepository(repositoryURI);
teamRepository.registerLoginHandler(new LoginHandler(userId, password));
teamRepository.login(null);

// Workspace manager
wm = SCMPlatform.getWorkspaceManager(teamRepository);

// load stream
IWorkspaceSearchCriteria wsSearchCriteria = WorkspaceSearchCriteria.FACTORY.newInstance();
wsSearchCriteria.setKind(IWorkspaceSearchCriteria.STREAMS);
wsSearchCriteria.setExactOwnerName({projectName});
wsSearchCriteria.setExactName("Stream_Target");
wsSearchCriteria.setExactOwnerName("{OwnerName}");
wsHandle = wsHandleList.get(0);

// workspace connection to the stream
wsConn = wm.getWorkspaceConnection(wsHandle, null);

// find & load a componenthandle for component "Comp2"
IComponentHandle currentCompHandle = wm.findComponents(IComponentSearchCriteria.FACTORY.newInstance().setExactName("Comp2"), Integer.MAX_VALUE, null).get(0);

// find all baselineHandles for the component handle of Comp2 
List<IBaselineHandle> blHandles = wm.findBaselines(IBaselineSearchCriteria.FACTORY.newInstance().setComponentRequired(compHandle), Integer.MAX_VALUE, null);

 for (IBaselineHandle blHandle: blHandles ) {

     // fetch IBaseline from BaselineHandle
     IBaseline desiredBaseline = (IBaseline) teamRepository.itemManager().fetchCompleteItem(blHandle, IItemManager.DEFAULT, null);

     // compare baselineName with baselineName as specified in UseCase, if it is our required baseline which is to be added.
     if ("bl1".equalsIgnoreCase(desiredBaseline.getName()) {

        // replace baseline operation
        IBaselineConnection desiredBaselineConnection = wm.getBaselineConnection(blHandle, null);
        IWorkspaceUpdateOperation wsUpdateOp = IOperationFactory.instance.getWorkspaceUpdateOperation(WorkspaceUpdateDilemmaHandler.getDefault());
        wsUpdateOp.replace(wsConn, desiredBaselineConnection);
      }
      // I expected that Comp1(bl2) will be added to "Stream_Target"
      // But no component is added to "Stream_Target"