It seems reasonable to conclude, News Today at the very least, that both sides were having second thoughts.
It also seems reasonable to say that a second bout of messy and News Today not entirely consistent briefing from each camp underlines the central truth in all of this - the hurt, the rows, the anger, the mistrust which has been there for all to see.
Her apparent lack of enthusiasm was almost immediately evident, when she failed to turn up at the first ever meeting of a new Council of the Nations and Regions in Edinburgh just days into the job.
What followed were daily questions to the prime minister’s official spokesman from reporters about whether she had taken up her post.
After weeks of stonewalling, an answer: no.
One insider got in touch about the envoy role and said: "We all thought it was a bad idea that would lead to endless drama and probably another resignation down the line."
In other words, what might have seemed like a mutually convenient layby into which Ms Gray could be shunted, ended up perpetuating a rather public soap opera.
Some sceptics had seen the new gig as a non-job from the start.
The government saying it isn’t looking to fill the vacancy will do little to dispel that instinct from those who thought it all along.
The Scottish National Party MP Pete Wishart mocked the news, telling the Commons: "We got the crushing news today that our British envoy to Scotland will no longer be coming there to represent this Parliament."
"We were practising the street parties and the haka just to be sure that she was properly welcome to the northern territories," he added.
So, what might happen next?
Some have pondered that Ms Gray may be offered a seat in the House of Lords – but would that revive all of these issues again?
Incidentally, beyond all the noise about Ms Gray it is worth reflecting on other more recent changes in Downing Street – both in personnel and managerial instinct.
Two Blair-era Labour advisers are returning to the heart of government in senior roles – Jonathan Powell as national security adviser and Liz Lloyd as director of policy delivery and innovation.
This reconfiguration coincides with Sir Keir Starmer coming to a view four-and-a-half months into the job as prime minister that it isn’t sufficient for No 10 to merely empower government departments to crack on with their work.