Tried yesterday doing this, all it does is recreate the world exactly the same as it was before you entered, so sadly it won't redesign it for the portal issue
I'll have to test this more, I did a quick look on one world this morning and it seemed different, I used a portal that before appeared in a cave, this time I came out on a lava lake shore. Though I may be mixing up my worlds, so maybe it doesn't do anything..... ooops......
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