I can’t say for certain that Coco was scrapped from BBT, but that does seem like the most likely possibility. As I showed in a previous post, much of the Coco area originally slated for BBT was copied over to DAK. It’s true that Disney sometimes puts multiple attractions for the same IP in different parks, but this one doesn’t pass the smell test – if they were already moving Encanto out of BBT, that would leave more space for Coco there, not less, so why move half of the Coco stuff elsewhere (unless you are removing Coco from BBT altogether)? Especially considering how many other IP choices they had for TA, that decision would not have made much sense if they wanted Coco to have a presence at MK.
Nothing from the original Dinoland-replacement Blue Sky concept art is actually getting built there. We already know Encanto was moved out of BBT. I wouldn’t put too much stock in the BBT artwork coming to fruition.
Doesn’t mean we’ll never see the Flight of Pepita ride get built, but my guess is it’s not on the roadmap for right now.