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I've read that to exclude a site from Copilot, that you need to turn off Indexing Site Content in the SharePoint site settings. However, this also removes the site from the SharePoint search results...
Tom, yes, if you are a Site Admin and you disable indexing, it disables it both for Search and for Copilot.
Shaun, if you don't want Copilot using content or resources on SharePoint or anywhere else then you should remove the user's permission which stops them from accessing the data using Copilot or any or other means. I can't think of any scenario where you would want a user to have access to something but not be able to use it. But if you have such a scenario and your org happens to have E5, then you can use DKE to encrypt content you don't want Microsoft 365 or Copilot to be able to access.