I suspect the Fed said "don't count on it". Misha has brought this on himself by competing sick while keeping quiet about his illness and ruining his standing with the Fed. When will Misha or anyone in that team think about the effect of their actions and worlds (or lack thereof) on Misha's reputation? Hire a PR consultant already.
Where are you seeing this irreparable damage to his standing/reputation? I haven’t seen any quotes from major figures, so do you have insider information?
He underperformed this season, immensely so, but his scores have held up well in comparison with the other Russian men (in comparison with all the top men, really!) Misha is still an indispensable part of the team, whether RusFed favors him or not, and they know it. They can afford to be political with the ladies, where there are half a dozen who could challenge for the World podium, but not with the men, where there is literally only one guy.
As for reputation—I’m sure they’re not happy with him for keeping his illness secret, but there are also probably people who buy into the “heroic” narrative. At the end of the day, he is an athlete, and athletes want to push themselves to compete. He isn’t the only person in the world to do this, and he is certainly not the only one in Russia.
I also don’t understand where this “Misha is terrible at PR” argument is coming from. Sure, I wouldn’t say he’s
good at it, but he isn’t controversial or overtly rude. There can be a bit of a sarcastic bite to the things he says in interviews (which I personally find endearing, but that's irrelevant to the discussion), but it never comes off as mean-spirited, and it is nothing compared to the things I hear from other competitors and coaches in Russia. As for the things he doesn’t say—again, he is not the first athlete to keep quiet about an illness and have it backfire on him, and he won’t be the last. I know my point of view is limited, but I don’t think the federation hates him as much as you think it does.
Maybe I’m being too optimistic, but I don’t think Worlds is out of the question if he skips Nationals, gets healthy, and shows good results at another domestic competition. RusFed might have told him it was, but if everybody bombs at Euros and Misha gets healthy, then why on earth wouldn't they send him to Worlds? And if it
is out of the question, so much the better: he can go home, get fully healthy, and start thinking about next season and any physical/psychological/technical changes that need to take place. I certainly don’t think his funding/place in the national team is in jeopardy. The Fed is not that stupid.