A number of reasons to remove approval especially given the delay in Candid's webpage updates and the IRS webpage updates.

Organizations that are manually approved (i.e., church, government, public school) not verified via Charity Check, could disaffiliate with denomination, and no longer meet the eligibility requirements.

A public charity may get reclassified as private, the IRS assigns incorrect classification and org is waiting for correction. Having another option to Remove Approval would keep from paying grants when applicable.