Wow! That's it! So I missed it by treating each subst item as a list instead of a string.
Indeed - though, the
subst item can be a list if that is what your list contains, e.g.:
_$
(setq lst '
(("A") ("B") ("C")))(("A") ("B") ("C"))
_$
(subst '
("1") '
("B") lst
)(("A") ("1") ("C"))