Again I'll ask the question that the above posters have conveniently not answered:
Name another artist who has not only screwed previous members out of royalties, but to the extend of removing them from re-issues
by replacing their playing with another musician, with the sole purpose of screwing them over?
Your telling that Ozzy didn't agreed to this, or had no part, and didn't 'sign' off on this?
One, he claims he didn't know. I have no reason to not believe him.
Two, to you this is a big deal. To me it's not. The musicians were paid.
Three, MANY bands have done this. Kiss, Def Leppard, Iron Maiden, Whitesnake, Tony Iommi, Little River Band, Journey, and Taylor Swift have all in one form or another re-recorded all or parts of songs with either the intent or by-product of removing people from their work. Whether it's "with the sole purpose of screwing" anyone over, I can't tell you, I'm not in their head. Certainly, Kiss re-recording Eric Carr's vocal over the music for "Beth" is if not for the purpose of screwing Peter Criss over, has the effect of doing so.
One: Eh, I'm not so sure about that. I think the jury's still out on that one. Regardless, for something like this, it's his name on the band. Ultimately, the buck stops with him in terms of allowing it to happen or, at the very least, for making it right after the fact, which he had plenty of opportunity to do at several junctures.
Two: Not true at all. That was the point and why those other guys were so upset. They didn't get paid.
Rightly or wrongly, it's always been my impression that Daisley was paid, he was just pissed about the AMOUNT and wanted more. He was PAID a lump sum for the lyrics on Bark At The Moon, for example, and as part of that payment it was understood that he wouldn't get writing credit. I'm with you (Bosk specifically, the group generally) when it's a concealment, but when the discussion is had and an agreement is made - even if the leverage isn't equal - I'm less understanding. Jake might have been a neophyte, but Bob Daisley, circa 1983, was no novice to the game.
Three: Largely irrelevant, and I'm not sure you are accurate on all counts there either. I have no knowledge of Def Lep doing that, and I have followed them for years. What are you specifically referring to? If you mean the remixes of Bringin on the Heartbreak and Me and My Wine on the 1984 High 'n' Dry reissue, that's not really the same thing. The original album was presented, in full, with the original musicians. The two remixes were bonus songs that were, in effect, new versions of the songs (in addition to adding Phil Collen on guitar instead of Pete Willis, they added synths and some other changes) that were given in addition to the original versions, not in place of them. That's applies to oranges in terms of replacing the originals with a same version with different band members and/or retroactively removing bandmembers from the credits. Or were you referring to something else?
Not sure about many of the other examples you mention, with the exception of Kiss and Journey, and I'm not sure how either of those help your case. Both bands caught flak from the music community and fans for doing that, and both are pretty widely regarded as being douchbag moves to either "scrub the record" of prior bandmembers' involvement or replace prior bandmembers' contributions or both. In neither case is it something to be admired or that should give Ozzy a pass for allowing something similar. Rather, it just goes to show that he isn't the only jerk out there.
Kiss: they have both scrubbed members from their tracks - the aforementioned Beth - and they've outright re-recorded a whole disk worth of songs in the studio with Tommy and Eric (Singer) (it was a free bonus with the Sonic Boom release). We didn't mention this yet, but they have also refused to update their RIAA sales figures for most of their albums, the net effect being that the original members (and some of the production staff) get less or no royalties for those releases.
Def Leppard: I am not talking about the BOTH/MAMW remixes. In 2012 or so, they re-recorded a number of their songs in order to avoid paying their label (and by extension, previous bandmembers) for the use of those tracks. Two of them were released as digital downloads, and the plan was (I don't know if it was followed through on) to re-record the entire catalogue. This is an especially sticky point for Leppard, because in doing so they are ostensibly cutting out the estate of Steve Clark, unless a side deal was cut (there is still publishing).
Iron Maiden: Not a huge deal, but they have done I think four or so of the Di'Anno songs with Dickinson in the studio.
Whitesnake: Over the years there have been various events like this; Neal Murray was scrubbed from some tracks; when John Sykes joined, they redid a couple of older tracks, and there are a couple different mixes out there of at least two of their records.
Tony Iommi: He famously had a set of tapes called the "DEP Sessions", with Glenn Hughes and Dave Holland (ex-Priest). When Holland was accused and convicted of diddling one of his drum students, Iommi wiped the drum tracks entirely and re-recorded them with... I forget who.
Little River Band: released a version of their Greatest Hits with all new vocalists, in part a reaction to legal difficulties with former members (particularly Glenn Shorrock, Goble (can't remember his first name) and a third guy (I want to say Blake Bortles, but that might be an NFL QB).