I see your point. And to tell you the truth, I have no idea why the stamp was designed that way. But if you look at the set which was issued back in 1926, it was issued like that. Even worse, there are stamps in the next issue where one denomination uses "repvbligve" and the next stamp uses "republique".
It's not an error at all. As stated by others, the V is used instead of an you intentionally to emphasize the link between the Republic of France and it's heritage link to Roman times by language and law customs.
Actually in the United States, there are older U.S. government buildings that use V instead of you to emphasize the link between modern law and it's heritage in Roman law.
sidenote - Nothing to do with stamps, but find an old clock with Roman numerals - what does it have for the number 4? Compare it to a modern clock with Roman numerals.
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