replace is a function of a 'str' object.
Sounds like you want to do something like (this is a guess not knowing your inputs)
test_lines[0].replace(test_lines[0],str(content))
I'm not sure what you're attempting to accomplish with the logic in there. looks like you want to remove that line completely and replace it?
also i'm unsure what you are trying to do with
content = (y)
the output of input is a str (which is what you want)
EDIT:
In your specific case (replacing a whole line) i would suggest just reassigning that item in the list. e.g.
test_lines[0] = content
To overwrite the file you will have to truncate it to avoid any race conditions. So once you have made your changes in memory, you should seek to the beginning, and rewrite everything.
# Your logic for replacing the line or desired changes
myfile.seek(0)
for l in test_lines:
myfile.write("%s\n" % l)
myfile.truncate()