Demons and devils were also removed from the core Monstrous Compendium and the first appendix (which formed the core monster supply) on original release, and shifted to a specific Outer Planes Appendix (later rebranded as the Planescape Monstrous Compendium Appendix). A few years later when they abandoned the looseleaf/Monstrous Compendium format, the Monstrous Manual did get a small number of fiends though.Did TSR do more than just change the names of the devils and demons as a response to the panicked detractors? I mostly played 1e and started using 2e in about ‘94 but I only used the PHB, so I’m not up on all the design changes.
In addition, the 1e Monster Manual had some stuff about demon talismans and devil amulets which one could use to command their owner, which is gone from the 2e version. I guess that bit was too close to "real" (for certain values of "real") devil worship.