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1) Could you please let me know if there will be any drawback with the approach which we are using?
Updating any existing certs needs to deactivate the partnership/legacy federation first and there is also a chance that if anything goes wrong you may not have a backup to revert.
2) CA’s recommended approach(for our case) is to import new certificate with different alias and change the Alias (to new alias instead of empty/defaultenterpriseprivatekey) in all the SAML service providers. Please confirm if my understanding is correct.
Yes, even if this is a long process it is the safest procedure as it also provides a way to restore to old certificate/alias if something goes wrong.