Why did the Fascist Grand Council remove Benito Mussolini from power in July 1943?

By the summer of 1943, the Italian position in World War II had become hopeless due to the loss of territories in Africa, regular bombing of northern cities, and a total collapse of national morale and war production. Following the successful Allied invasion of Sicily, it became evident that the regime was on the verge of collapse.123

On the night of July 24–25, 1943, the Fascist Grand Council met for the first time since the war began. During this meeting, Dino Grandi proposed a motion of no confidence in Benito Mussolini, which was supported by an overwhelming majority of the council members. The resolution effectively asked the king, Victor Emmanuel III, to resume his full constitutional powers and dismiss Mussolini. This action was driven by the desire of many Italian leaders to seek peace with the Allies and prevent further national disaster. Consequently, the king ordered Mussolini's arrest the following day.3412