Armored Churchill mk.III with the QF 75 or the 6pdr gun would be consider too to replace the VII
I think it could be foldered with the Churchill VII, but the 95 mm is a bit too unconventional to outright replace it in the progression, even if it technically does fill the 4.7 BR gap.
It would ideally come alongside a more conventional vehicle like the late Churchill III.
The Mk. III* is probably better suited to 4.3 with the NA75 (which could also get the hull side applique) while the III ‘Late’ could go 4.7 if it gets the APDS, M86 APHE, and a decent enough covering of spare track.
The VIII could then be foldered with that, as Fourche suggests, instead of having a 4.7 come after a 5.0.
The NA75 should go down to 4.0, it’s really not that great. The Churchill III* should replace it at 4.3, and then the Churchill III Late (L/50) should be 4.7 with 6-Pdr APDS.
I don’t think having a lower BR vehicle come after a higher BR one in a folder is necessarily a bad thing to be avoided, so long as the research cost is sensible.
It’s the most logical way to represent the actual progression of the Churchill design without making the required progression weird or forcing players to play through a weird variant that doesn’t match the gameplay of the surrounding vehicles.
You could still throw it in with the later Churchill III’s if you so wish and everything would be fine, but to me, that just feels less thematically appropriate for the folder if that makes any sense.

Having lower BR vehicles in a folder isn’t even a new thing either. That’s the whole point of folders, you can skip those vehicles if your intention is purely grinding the tree or you could unlock it to add to a lineup.
I’m aware. It’d just be nice to be able to unlock an even BR lineup sooner than later.
It does, and I agree, but this is a game first and foremost and, compared to us, a lot of people just couldn’t care less about that sort of thing.
Ngl 6-pdr APDS is not something I’d ever look forward to playing. In WT that post pen damage would be next level bad.
Gaijin finally giving 6pdrs the American M86 APHE would solve that but I believe both shells would need to be available for it to be good enough to replace the VII and handle being uptiered.
Should be doing more damage than RARDEN APDS with like ~180mm penetration, which seems alright to me.