I installed the patch and played the Bloody April scenario a few times as both the USA and CSA. Purchased no replacement chits at any time. Both cavalry and artillery was replaced beyond the amount of available replacements. For example, 3 artillery units would be received but only 1 chit was available. No chits were ever used to replace hits even though 300+ hits had been replaced.
For reference, I play on steam. I downloaded the patch and applied it directly into the Steam > steamapps > common > Civil War II folder. Both the application and the CW2 folders were updated. The game launches and displays the Dec 2, 2016 1.06.2 patch as being the active version.
Hope this helps.