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In this video tutorial, the presenter demonstrates how to replace photo placeholders in a Word template. The process begins by selecting the cover photo and right-clicking to choose "Change Picture" from the file. After selecting a new image, the presenter addresses the issue of the image not fitting the placeholder correctly. To fix this, they navigate to "Picture Format" and use the crop feature to adjust the image. The crop handles are enlarged, and the image is resized to focus on one figure. The presenter moves and centers the figure appropriately, ensuring it looks good within the template. The final adjustments are made, and the photo is set.