This is the time to have a conversation about their role in the organization. They have opinions, sure, are those opinions argumentative by themselves probably not.
Most engineers want to know the why’s. If there in the dark on the big picture it can impact the overall results as they make wrong choices in design and architecture if they don’t know.
The conversation needs to be about their career path, and the aspirations. If they’re a good engineer, maybe they want to be more. Maybe their ideas are sound and they are being ignored which leads to frustration and more friction because they have insights of a problem you don’t see or are blind to.
I would suggest scheduling this first conversation, then daily or weekly 1:1 sync meetings. Keep them in the loop and feeling they are valued members of your team.
After you have reset your rapport with them. Listen to them, reinforce you have their back and part of the team. Delegate some responsibility through stewardship make them the owner of something. Let them succeed or fail.
If they still exhibit the same behavior, and can’t handle what you delegated to them, then it’s time for them to go.
Don’t loose a talent because you labeled them with a “communication issue”. The issue may be you are not listening or effectively communicating the direction or tone.
It also sounds from you post and described issue, is a result from your management style and possibly being a micro-manager. I could be wrong, but that is what I inferred.