The most common and most likely answer to this crossword clue is the 8 letter word DAMPENED
I've seen this crossword clue in Independent
D
A
M
P
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D
More clues leading to the result DAMPENED
Buddy explains!

The straight part
We know that "discouraged" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case discouraged = dampened.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does DAMPENED mean?
DAMPENED verb- To make damp or moist; to make slightly wet.
- To become damp or moist.
- To depress; to check; to make dull; to lessen.
- To become damped or deadened.