Advice on dropping out of master's program

I'm currently in the second year of my research-based engineering master's program at a great university in Canada. I finished all my coursework last spring, and so have been working exclusively on research for the past 8 months. Before starting the program, I worked in industry for about 2 years after undergrad. The problem is that I have realized that I really don't enjoy doing research work, and have lost interest in my field as well. There are a few things that I am struggling with:

My options now are to either drop out entirely, or to switch to the course-based masters program and take a few more courses this term or in the fall in order to graduate. As far as I know, there wouldn't be much difference to my career prospects if I take the course based program.

While I want to drop out, I feel anxious about how my supervisors will react and what they will think, especially as they have been paying me a stipend for the past year and a half. Can anyone relate to my situation or have any insight to share about the perspective of my supervisors? Thank you.

My options now are to either drop out entirely, or to switch to the course-based masters program and take a few more courses this term or in the fall in order to graduate.

I recommend switching to the course-based master's program. Having a master's degree is better than not having a master's degree, and while you should ignore sunk costs, the opportunity cost to get a master's degree at this point is quite low thanks to the work you've already completed.

I feel anxious about how my supervisors will react and what they will think

They will get over it; you need to do what is right for you. Moreover, these things happen; no competent supervisor will be furious or personally offended because a master's student left them. Now they might disagree with your decision, or they might be concerned for you because they like you and wish the best for you, but there is no need for anxiety.

I think it would be imperative for you to plot your next steps carefully. If you would like to go into industry, it could help to determine whether the course-based program offers any alternative. But I would leave dropping out as the very last resort, as it sounds like you are close to the end (assuming this is a 2 year program). It could also help to speak to an impartial mentor in the program who could give assistance with this. Regardless if this program is best for you, there could be some valuable skills in there that could be assets for future employment, especially in engineering and at a high end university. It could be good to consider the options post-academia in addition to your current ones.