When you have a drive fail in a storage spaces, changing out the drive isn't straight forward, however well worth the effort when you consider the advantages storage spaces has over regular RAID. Specifically the lack of a an expensive disk controller, and tiered spaces with the use of HDDs and SSDs.
So in my case it is a 2U server with a RAID Controller set to JOBD, and I had a failure of a Seagate drive as shown in the picture above. On the server we removed the bad physical drive, if on a raid controller prepare the drive, should be set to JOBD. Formatting may be required. As shown in image below, I added a Toshiba drive; and to replace it we need to the the following.
PS C:\> $PDToRemove = Get-PhysicalDisk -FriendlyName "$DISKNAME"
In this case the drive's friendly name is "SEAGATE ST600MP0006" then we need to remove the disk with the following Powershell statement.
PS C:\> Remove-PhysicalDisk -PhysicalDisks $PDToRemove -StoragePoolFriendlyName "$PoolName"
(in this case SEAGATE ST600MP0006)
Once the old disk is removed we can run a repair with the following powershell statement
PS C:\>Repair-VirtualDisk -FriendlyName "$VIRTALDISK"
This will take some time to run, but it is much faster then repairing a RAID setup, taking about 20 minutes to repair the storage spaces mirror setup. While the dive is being repaired you will see it in a InService status.
When storage spaces finishes the drive will show as being in good health.