I searched in dictionary and it returned "in its present condition". Here is the corresponding example:
the country would struggle, as it stands, to host the next World Cup
Can I simply replace it with "now"? More examples will be appreciated.
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The idiomatic phrase "as it stands" means "in its present condition" as the OP has mentioned. In other words, we may say that it means "as it's now, without any changes to it".
This plan as it stands is not practicable.
We have no option but to accept the proposal as it stands.
I don't think we can change the phrase "as it stands" to "as it's now" as the former is more idiomatic, meaningful, and sounds good.