One thing worth checking that hasn't come up yet: go into the Alexa app and look at your device settings - specifically check if the microphone is muted or disabled. Sometimes after a reboot or an app update, the microphone permission can get toggled off, and the device will still respond to touch and light cues but ignore voice completely. It's buried a few menus deep in most versions of the app, but it's a quick fix if that's what happened.
If that's not it, try a full factory reset rather than just a reboot. Hold down the reset button (usually a tiny pinhole on the bottom) for like 10-15 seconds until the light does something different. Then set it up fresh from scratch in the app. I know the other answers mentioned WiFi and mic cleaning, which are solid, but a factory reset clears out any corrupted software that might've gotten stuck during an update - that happens more often than people realize and a quick reboot won't fix it.
After two years, the device is probably still worth troubleshooting for an hour or so before replacing it. If none of this works, then yeah, replacement makes sense since they're not super expensive anymore. But I'd exhaust the software angle first since the hardware is clearly responding.