Parts of the supporting code have, and Apple still plans to roll that feature out. We are mid-rollout. They probably won’t make any other announcements about it. You’ll know it’s complete when they announce e2e encryption for iCloud Backup.
They said some stuff after the backlash, but they never retracted or renounced their plan. Indeed, portions of the code are now in the current released OS.
I think that code is there to support their new feature where it does on device scanning of photos sent to minors via iMessage, which is not reported to Apple.