What’s behind the decision to move Dye functionality to the Dyer’s Workstation?
First and foremost, to unify the Inventory GUI. This lets us create a small set of consistent buttons corresponding to actions you will have when selecting an item, instead of varying options that can sometimes be confusing.
The second reason is that it helps justify the physical space taken up by the workstation, which previously was only used to store crafting recipes. With this new functionality, you now have another reason to return home after picking some new items.