extensions.unifiedExtensions.enabled >> false no longer reverts to the old overflow menu system.
As says on tin. I prefer to keep everything in the overflow menu, separating them is annoying. Also, itens in the add-ons menu are larger and less compact. How this layout change has anything to do with Manifest V3 I have no idea.
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Thank you for your question. The Unified Extension Button is not designed to be removed in Firefox as part of support for an improved add-on standard. The preference that you are looking for was removed as part of the update to Firefox 111.
There may some work done to make it possible to move the icon position on the toolbar, but there are no plans to make it removable at this time.
'part of support for an improved add-on standard.' How? You didn't need to change the UI, just the backend.
Part of that standard is making sure people have an easier way to control what web extensions do and can access. The Unified Extension Button achieves this.