So I know that one local breeder has upload a video of his FIP kitten have pass away, it makes me wonder that is it normal that a formal or reputable cattery would have FIP/corona virus in their cattery..?

You will be hard pressed to find a long-time breeder who has not had FIP at some point in their cattery. Reputable doesn't have anything to do with it. The BEST and most CAREFUL breeder can end up with an FIP cat. While you'd think they would not advertise something like that ... hopefully, they are doing what is necessary to clear it up from their cattery.

if it happened, do they replace a new kitten for you?

A good breeder would agree to replace the cat -- IF the cat had the active FIP when you took the kitty or developed it within a short period of time. A cat that would develop it years later would probably not be subject to a health guarantee or replacement. But, most breeders have in their contracts whether they replace the cat or offer you another at a discount. Many breeders have their contracts online, so you can check them. If you find a breeder who doesn't seem to care -- find another breeder.