"The original grade for a repeated course when the transcript does not show both the grade and the units for the original attempt. The total number of credits assigned to these grades will appear on the applicant's academic summary, but will not be included in the GPA calculation."
So if your college only counts the second attempt, lsac will only count the second attempt.
Be careful with your interpretation....LSAC only ignored the first grade if the college "hides" it, i.e., does not show it on the transcript. [Note the bolded.]
Some colleges will allow for GPA replacement when repeating a course, but still show the original course on the transcript. (They just no longer use if for the college's GPA calc.) But LSAC will still use it.
Other colleges allow for total replacement; in other words, they remove the first grade and course from the transcript entirely. In such case, LSAC doesn't seen anything....