THE IDEIA IS MAKE THE PARAMETER WORKS.
BELOW SAP ANSWER ABOUT THE ISSUE (Unconverted ASE source insertion in replication):
Regarding the fact that SAP RepServer parameter 'dsi_charset_convert' is not working I've contacted the SAP RepServer product engineering and that answer that I got about this is the following:
Replicating data to a different character set requires two Replication Servers with dsi_charset_convert options, RepServer is designed this way.
The primary server must be configured with the same character set as the primary ASE server (It's cp850 in your case).
The replicate replication server must be configured using the same character set as the replicate database (iso_1 in your case).
The server call open server libraries to either convert or keep the data to the target character set based on dsi_charset_convert setting.
The dsi_charset_convert parameter is a kind of confusing because peope will easily consider this is setting for a connection.
Actually it is for the replication path and the charset conversion is implemented in DSI module.
The replication server does the charset conversion because ASE server doesn't allow the characters that cannot be converted to insert into the table.
Therefore, to replicate between different charset sets requires two replication server.
The Replication server doesn't support to use one replication server to replicate from or to a different charset database. If one repserver is used for this , the DSI will shuts down when it encounters some uncommon characters. The users has to manually submit it to the target without charset conversion and skip the transaction.
Attached history until now : (tickect 456275 / 2016 )