The decision came after the service lost confidence in the commander's ability to lead, according to the Marine Corps.
The Marine Corps created the team in response to the rising use of unmanned aerial vehicles in international conflicts.
Lance Cpl. Jonathan Phillips spent 20 months in prison, half of that in solitary confinement.
Gear and clutch problems in the Osprey have killed more than a dozen troops in recent years, leading to groundings of the tilt-rotor aircraft.
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