If you haven't discovered recursive path expansion with `**` yet, which is supported by a number of popular shells, including bash, it is about to improve your shell life.
Agreed, doing sd 'search' 'replace' **.py is common in my history. I only mention fd + xargs as a backup for when you need to do something that a simple shell expansion won't cover.
Also, for a "confirm your changes" type workflow, I like git add -p after running the sd command just to review all of the changes.
It's glob and/or bsd_glob from the underlying C stdlib. Another interesting example of things the stdlib glob can do:
#!/usr/bin/perl
# perl since it's an easy way to use an arbitrary function from stdlib
use File::Glob "bsd_glob";
for (bsd_glob("{Hello,Hi} {world,everyone}...a {demo,example}")) {
print($_."\n");
}