Where is the microphone button on iPhone 13 Apple TV remote

It seems that a mic button in the software remote now only appears for dictation in a selected text input field, and only when the device language matches one of the supported Siri languages for that region.

Let Apple know about the functionality that you expect: Feedback - Apple TV - Apple

Why would apple make the product less user-friendly after the update?

that does not make sense to me.