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Queen Elizabeth II had no involvement in the decision to defend the Falklands, other than perhaps some private counsel with the then Prime Minister, just as King Charles III will have had no involvement in this decision.

Officially sure. Practically? Not a chance.

Why is it sad for the UK to no longer claim as their own and occupy a small piece of land that the ICJ ruled they didn't even lawfully have sovereignty over?

The difference is that Falklanders at multiple times established they want to be British, more than the government in London wanted them.

Whereas Chagos Islands inhabitants were violently expulsed and the only people on site are occupation forces.

The inhabitants were planters and their workers (originally slaves imported in the 1700s); no-one is native to the islands.

And the poor folks who were expelled (and their descendants) were not even consulted this time around — this is purely a deal between the United Kingdom and Mauritius, whose only relationship with the islands is that they were both lumped together under the old colonial administration.