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I don't think it ever was - the cargo area is quite small in the Escape compared to the Explorer and I didn't think THAT should have ever had a third row seat.
"The Escape is basically a cut down version of the Explorer."
Not even close. The Explorer is built on a truck frame with rear-wheel drive. The Escape is built off a Mazda car platform with front-wheel drive. Different engines and different transmissions. Maybe they share a radio or something.