No, "Reset" has never removed players from the tournament. The idea of "Reset" was initially meant to address two main scenarios: (1) you've started the tournament but something has gone awry and you just want to start over. So, go back to round 1 to the point just before the tournament has started (this would be resetting the tournament, but keeping players' buy-ins); and (2) you're about to begin a new tournament and you're running basically the same tournament you did "the last time" (same structure, same buy-in, even the same players), so the easiest thing to do is load the last saved tournament, reset it, and save it as a new tournament (reset the tournament, undo all buy-ins). There's never been a reset option that actually removed players from the tournament.
Just wanted to clarify the functionality. As long as it's working the way it's supposed to, all good.