"She's distanced herself from Jessica because the comments were unacceptable and offensive," a source tells ET. "[Meghan's friends have been] concerned for some time that Jessica has been profiting from her relationship with Meghan and using it to further her brand. That's something [Prince] William and Harry have never accepted with any of their friends."
Still, according to the source, a report that she's completely cut off her longtime pal is an exaggeration.
"Jessica made an error in judgment which was regrettable and for which she has apologized and made a vow to step back and learn from her insensitivity," the source says. "Regardless, Jessica has been a source of strength for Meghan in the past during some of her most difficult times. She even watched over [Markle's son] Archie."
Meanwhile, the source says that Markle -- who has spoken out against racism on multiple occasions -- is continuing to educate herself when it comes to social justice and equality.
"For now, she is focusing on projects and issues that are important to her including the development of the couple's foundation and listening and learning from community leaders about social justice and equality," the source says.
On Monday, a source told ET that 38-year-old Markle was struggling with Mulroney's controversy and that she felt her best friend was "so tone deaf while using her privilege to bully Sasha Exeter."
"She rightfully called me out for not doing enough when it came to engaging in the important and difficult conversation around race and injustice in our society," she wrote of Exeter. "I took it personally and that was wrong. I know I need to do better. Those of us with a platform must use it to speak out."
Despite Mulroney's apology, her show, I Do, Redo, was removed from its network, CTV's, channel and platform. Additionally, Mulroney will no longer appear as a contributor on Good Morning America.