Anyone know the full story on why file exployer was removed and any way to effectively ask...

It was removed due to limited usage. It may have also been removed due to people using it to mod things like Minecraft which is not allowed on the console.

For any sort of feedback or suggestions for features on the console, you would need to post at https://www.reddit.com/r/xboxinsiders/wiki/ideas

According to Microsoft figures, hardly anyone used it, so the desicion was made to remove it, so resources could be used for something else. If you want it back, then make a post on the ideas forums on here

https://www.reddit.com/r/xboxinsiders/wiki/xboxrequests

It was more about the reply to the tweet asking him "what about those in rural areas who may not have high speed internet" to which he replied "I wouldnt live there, why would anyone want to live there" (or words to that effect)

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That is more the reason why he was removed/pushed/asked to leave or he just quit

File Exployer isn't in Ready to Install and looks to have been removed from the store. VLC doesn't let me view local storage, the Files&folders app let's me partially do that, but I'm no longer able to access previous downloads from IE that were saved to
default local storage.

IE now only lets me save to Onedrive. I'm unable to save to default local storage or to an external device.

The changes happened after a systems update took place.

Your next option would be to uninstall the Xbox beta app, games too, and this should remove any left over files from the Xbox beta app. These files are stored in a folder with restricted permissions, so any left over files can't be deleted manually. I
know this is not ideal, but if there are left over files creating issues then this would be a way to remove them.