I don't think you understood what I said.
The Honor Policy give +1 happiness if a unit is garrisoned, that I think is gone. I'm not sure what your talking about.
It is not gone.
What I was talking about is how your happiness sources are listed if you mouse over the

icon. '+x from garrisoned units' used to be a seperate category pre G&K but now units add to '+x from Local City Happiness'.
When I move a unit out of a puppet city I lose one

from the local happiness category and when I move it back in I gain one

. I checked that again ten seconds ago (I play in window mode). I believe the confusion is that a single city can never contribute more happiness than it has citizens from local happiness. If you have a size 2 city with a Circus it already has +2 local

from the circus and garrisoning a unit will only add 2

and no

, but if it has three citizens the unit will compensate for the

from the additional citizen.