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So I have looked over the specifications of the Ambassador class vessel, and it seems to me very unlikely that, considering that they are more powerful than Excelsior class vessels, that there wouldn't be more of these vessels out there in space. However, given that they do seem to be little more than space hotels, I was pondering to myself what if they were retrofitted in much the same way as the USS Lakota. Maybe just a few test vessels to test out these upgrades?

As I said before, for my money any ship currently in Starfleet would have been refitted with more modern systems.

But as I also said before, refitting can only go so far. In the end, no Ambassador is ever going to be nearly as good as a modern Akira or Nebula.

I don't understand the question. Do you mean, "Were they refitted?" or "How would they have been refitted?" If you're looking for a canon answer, then it is no - there is no canon evidence of refit Ambassadors.

Actually there was Mikey. There are two versions of the Ambassador. The E-C type and the one with the caps on bussard collectors. The pylons are shorter too among other things.

You could call it a refit or a sub type or block 2 or whatever.

Could they be refitted? Sure. They were more than likely refitted all the time during their service life.

A Lakota type refit probably be at least as powerful as the Lakota