The current treatment process (i'm not ruling out further advances - but i'm not going to speculate on them if they haven't been announced to exist, so i'm just going to talk about the current one) leaves behind nothing but a collagen scaffold. In the human body, collagen occupies what is called "extracellular space", ie the space outside the cells. In your lung example, the cells which are responsible for doing all the lung-related activities like oxygen exchange are completely destroyed by the treatment process.
Probably the best analogy for this is, you could consider ADAPT-treated tissue analogous to concrete. You can build a city out of concrete, but unless its full of people (cells) it won't have any economic output, and we don't have the technology to do that. However, you can still build loads of extemely useful passive structures out of concrete (ADAPT-treated tissue), like roads (arteries), or patching holes in damaged structures which still contain all their crucial functional components, and just need structural repair. So, possibly a lung patch for pneumothorax, but definitely not a lung replacement.
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