In my district our SIS enrollment processing for drops removes students' users from Canvas courses. I don't know the specific status that is applied, but I do know that dropped students do not appear on the Prior Users page. One of the challenges this presents is for documenting when students on financial aid have been removed from a class. Their aid can be prorated based on the last date they participated in an academically related activity, so it is necessary for a fully online class that their Last Activity be visible.
In the embedded video I show how an instructor can find this date to share with our Financial Aid office by using our .test Canvas instance. I suggest using .test because that way the student can be manually re-enrolled in the class without generating a notification.