I've read the article about soft toy transitional objects, just wondering if I'm meant to remove the soft toy once bub is asleep? She's 7.5 months old and I don't want to wake her up in removing it from her grip, but also don't want to leave it in the cot if Red Nose recommends removing... Many thanks!

Red Nose does not recommend that you must remove soft toys after baby has gone to sleep.
Also, Red Nose does not recommend any specific products or material types for comforters.
However, it is important not to use one that is large (& may cover baby’s face) or with objects (like beads) attached to it which may become loose or products that have small buttons in them that a child may swallow or choke on.
Also, ensure there are no strings or cords that may wrap around baby’s neck, creating a risk for strangulation.

Red Nose also says:
Keep the cot free of large soft toys, pillows, bumpers, activity centres and anything else that could be ‘stacked’ to assist a young child/toddler to climb out of the cot.
https://rednose.org.au/article/can-my-baby-have-a-soft-toy