re: With Biden most likely not running for office, what is their reason for holding back?

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Logistically, this idea is almost impossible. They would not even be able to change the name on ballots after the convention, and it would be a total chaotic clusterF to try and nominate someone different at the convention or even elect "Biden" after he was dead and then try to get the electors to vote for a different consensus candidate.

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True. But there is another way. Kamala Harris can announce that she's not staying on as V.P. Biden will choose Newsom as running mate.
Shortly after the election (assuming Biden-Newsom win) then Biden is removed (for health reasons).
or
Biden can stick with Harris for the election and then replace her right after they win. Name Newsom V.P. and then Biden gets 'ill.'
But the Dems are gonna have to give Harris a shite load of money to go along with this.