Not quite removed completely
Microsoft is adding a new option to Office apps that will let users move the floating Copilot button back to the ribbon.

The button, officially called the Dynamic Action Button (why does it even need a name?), recently appeared in Word, Excel and PowerPoint. It floats near the lower-right corner of the document area, which has caused problems for some users. Excel users appear to be affected the most because the button can cover spreadsheet cells.
Copilot button moves back to the ribbon
According to Microsoft, the company has seen higher Copilot engagement after adding the floating button (they did not mention how much of that engagement was accidental). However, it also admits that users want more control over where Copilot appears inside Office apps.
Microsoft already added a docked mode that reduces the space taken by the button. The next update will add a “Move to ribbon” option, available from the right-click menu on the Dynamic Action Button. Once enabled, Copilot will no longer float over the document or spreadsheet.
Source: MIcrosoft
The change is expected to roll out next week. Microsoft says this is a short-term adjustment while it continues to work on making Copilot more adaptive across Word, Excel and PowerPoint.
This follows a similar change in Windows 11, where Microsoft recently started reducing Copilot branding and removing some unnecessary Copilot entry points from apps such as Notepad and Snipping Tool. We also recently covered Microsoft’s plan to let users remap the dedicated Copilot key in Windows 11.
So Microsoft is not removing Copilot from Office apps. The company is only changing how the feature is presented, after complaints that the floating button interrupted regular document and spreadsheet work.
Source: Microsoft