but I'm trying to understand the syntax
From https://pubs.opengroup.org/onlinepubs/009604499/utilities/sed.html:
s/BRE/replacement/flags
Substitute the replacement string for instances of the BRE in the pattern space. [...]
The replacement string shall be scanned from beginning to end. An ampersand ( '&' ) appearing in the replacement shall be replaced by
the string matching the BRE. The special meaning of '&' in this context can be suppressed by preceding it by a backslash. The characters "\n", where n is a digit, shall be replaced by the text matched by the corresponding backreference expression. The special meaning of "\n" where n is a digit in this context, can be suppressed by preceding it by a backslash. For each other backslash ( '\' ) encountered, the following character shall lose its special meaning (if any). The meaning of a '\' immediately followed by any character other than '&', '\', a digit, or the delimiter character used for this command, is unspecified.
Generally & and \1 \2 ... \9 and \\ are "special" in replacement. There is also \n that can be replacement list that is not in POSIX standard, but it is supported in sed implementations. Also https://www.gnu.org/software/sed/manual/sed.html#The-_0022s_0022-Command .
BRE is:
The sed utility shall support the BREs described in the Base Definitions volume of IEEE Std 1003.1-2001, Section 9.3, Basic Regular Expressions, with the following additions: [...]
In regular expression {10} means to match a group repeated 10 times. BRE and replacement have very different rules, and regular expression is used to match, not generate, strings.
I can recommend https://regexcrossword.com/ to learn regex with fun.