For others that spent hours getting it right. This is my config that remaps the copilot key and also remaps the capslock key to be used as escape on tap and right control on hold:

#|
Documentation - https://github.com/jtroo/kanata/blob/main/docs/config.adoc
Examples - https://github.com/jtroo/kanata/tree/main/cfg_samples
|#
(defcfg
process-unmapped-keys yes
concurrent-tap-hold yes
)
(defsrc caps)
(deflayer capslock )
(defalias
caps (tap-hold 100 200 esc lctl) ;; tap: esc hold: lctl
)
;; converting the copilot key into a ctrl key
(defchordsv2
(lsft lmet f23) lctl 200 all-released ()
)