0.C-4135 Canola Seeds missing from craft menu

Once i updated to the latest experimental canola seeds have been removed from the crafting menu.

Though i am finding just the seeds now from foraging is it intended that the canola item is being replaced by just the seeds?

Yes, the canola stalk is fairly pointless, and I think has been replaced by the generic “withered plant” item.
The only special part is the seeds. However existing canola stalks still exist for backwards compatibility.

I just found some canola seeds while foraging a shrub. Recent version. Has the plant been re-introduced, or is this a relic?

Canola seed hasn’t gone anywhere; the ‘canola stalks’ have been removed.