I think archiving a cache is no reason to remove a favorite point.
Favorites are not only a bookmark for a great cache, but also an award and a gift for the owner.
The last Reward Virtuals of 2019 were awarded based on the favorites.
I know some caches that were archived by reviewers / reapers against the owner's will (changed rules, land owner, other reasons). In those cases the withdrawal of a favo is only an additional slap in the face for this owners.
In addition, event visits and lab cache adventures bring enough finds for a new favos.
Furthermore a "favo follows" statement in the log should also suffice. I've already discovered many note logs, the content of which is "newly earned favorites point added to my find from August 2019".
For me, my GCvote voting of 5 stars is my documentation of favorited or to be favored caches.
If an owner turns a nicely crafted D4 / T3 regular cache with a lovingly designed interior into a D1.5 / T1 micro cache after a few years, in the same listing, then of course it has nothing to do with the original cache. Archiving by the owner with a new reload cache "in memorian" would probably make more sense here.
In this case, you should of course NOT remove the favorites from the old great archieved cache.
For many owners, geocaching is not just a game.
The owners want to offer their guests a special experience. They do this voluntarily, but that does not automatically mean that they are not happy about a favorite point. Especially in today's times with extensive "TFTC" logs, favos are a small consolation for the owners. I prefer to see a personal log with my own caches, enriched with a few photos (hiking caches). A favorite is of course the crowning glory and the "reward" for the elaboration and maintenance.