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Clearing a Dataverse lookup field isn’t handled like a normal update at the API level. Dataverse often ignores a regular update with a null value for lookup fields. You actually need to make a separate “remove reference” call for that specific field instead of just updating it to null. ADF’s Copy activity doesn’t make that kind of API call, so even if you have the null handling configured correctly, it may never actually clear the lookup.
A workaround is to add a Web Activity or Azure Function that calls the Dataverse API directly and removes the reference for rows where the field is blank. The Copy activity can’t do this by itself.