The same is true for trees and other items. I upgraded on Gleba and ended up with some exploding trees that needed to be cleared. Not a major problem but a nuisance.
I have not seen it replicate water/oil/marsh/ore so it is limited to feature placements.
Yes its limited to decoratives. It is a bit annoying, but I found it basically only use for cliff explosives in warptorio, so for now it is still in game. I will probably add setting in future that will disable this behaviour