Yup, and Salah had a small hissy fit about it.
I believe the captain hierarchy was voted on by the players, though. So it is them who do not see Salah as captain material.
The point still stands that the club, whoever it is making these sort of decisions, doesn't (or at least didn't) see Mo as captain material. Whatever the criteria is Mo didn't fit it as well as others.
Whether there'll be a reshuffle now that Milner and Firmino have left remains to be seen but I don't think Salah will be in the running because, on top of the day Trent got given the armband for the first time so have Bobby, Ali and Robbo in games that Mo also started.