[powershell] PowerShell Script to Find and Replace for all Files with a Specific Extension

I would go with xml and xpath:

dir C:\Projects\project_*\project*.config -recurse | foreach-object{  
   $wc = [xml](Get-Content $_.fullname)
   $wc.SelectNodes("//add[@key='Environment'][@value='Dev']") | Foreach-Object {$_.value = 'Demo'}  
   $wc.Save($_.fullname)  
}

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