My thoughts. I think that piece of copper is a copper pipe, not a copper tube. Thus the outside diameter will probably be 1.05" rather than 7/8" which is for 3/4 copper tubing. This is assuming schedule 40 pipe.
I believe the joint at the bottom is threaded and it's 3/4 copper pipe with an OD of 1.05"
Now on current hot water heaters the dip tube is plastic, thus you can't heat the top fitting on the water heater.
Putting the TPR at the top of the copper pipe, I think, would give you the 4" requirement. An 8" probe seems to be the largest.
From the looks of it, you have 1" of copper pipe and an inch of union. Now add about 1.5" (guess) for a tee, so you have 1+1+1.5 or 3.5". Subtract from 8" you get like 3.5"
I think my estimates are wrong, but the ideal place is on the top of the copper pipe. Remember, I believe it to be pipe not tubing thus it's going to have a much thicker wall.
A brass or copper Tee, would be a good choice.
As for removal, I see a union in the picture, which also makes a nice lever arm.
I'd clean up the threaded area with a Dremel wire brush or wire brush.
I think I would use one vise grip that's good for tubing and a pipe wrench for the galvanized.
I'd hold the copper pipe with the vise grips and try to move the assembly and see which one loosens first.
I don't think I would heat the joint.
If the wrong joint moved, I'd tackle the union with a pipe wrench and the copper pipe with the vise grip. Something like:
The Original? Curved Jaw Locking Pliers - Tools - IRWIN TOOLS